Crowdstrike Holdings Inc (CRWD)

Payables turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Cost of revenue	US$ in thousands	2,307,560	1,839,550	1,235,760	822,645	533,277
Payables	US$ in thousands	28,180	45,372	47,634	12,065	1,345
Payables turnover		81.89	40.54	25.94	68.18	396.49

January 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,307,560K ÷ $28,180K
= 81.89

In analyzing Crowdstrike Holdings Inc's payables turnover ratio over the 5-year period from January 31, 2020, to January 31, 2024, we can observe significant fluctuations.

The payables turnover ratio measures how efficiently a company manages its accounts payable by calculating how many times during a period the company pays off its average accounts payable balance. A higher turnover ratio signifies that the company is paying its suppliers more frequently, which can indicate efficient management of working capital.

Crowdstrike's payables turnover has shown substantial variability over the years. Between January 31, 2020, and January 31, 2021, the ratio saw a dramatic increase from 396.49 to 68.18, indicating a significant decrease in the frequency of paying off accounts payable. This sudden drop could suggest a change in the company's payment practices or the timing of payments to suppliers.

In the subsequent years, the payables turnover ratio continued to fluctuate, with values of 25.94 in January 31, 2022, 40.54 in January 31, 2023, and 81.89 in January 31, 2024. These fluctuations indicate ongoing changes in the company's payment habits and supplier relationships.

It is essential to delve deeper into the reasons behind these fluctuations in Crowdstrike's payables turnover ratio to understand the company's evolving payment strategies and relationships with suppliers. Further analysis and comparison with industry benchmarks would provide additional insights into the efficiency of Crowdstrike's payables management over the years.