Crowdstrike Holdings Inc (CRWD)
Liquidity ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Current ratio | 1.77 | 1.76 | 1.73 | 1.83 | 2.65 |
| Quick ratio | 1.25 | 1.29 | 1.28 | 1.42 | 2.22 |
| Cash ratio | 1.25 | 1.29 | 1.28 | 1.42 | 2.22 |
Crowdstrike Holdings Inc's liquidity ratios have exhibited varying trends over the past five years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, decreased from 2.65 in January 31, 2021, to 1.83 in January 31, 2022, indicating a decline in liquidity. Subsequently, the ratio continued to decrease to 1.73 in January 31, 2023, but then slightly improved to 1.76 in January 31, 2024, and further to 1.77 in January 31, 2025.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, decreased from 2.22 in January 31, 2021, to 1.42 in January 31, 2022, reflecting a significant decline. The quick ratio continued to decrease over the following years, reaching 1.28 in January 31, 2023, 1.29 in January 31, 2024, and 1.25 in January 31, 2025.
The cash ratio, which provides an even more conservative assessment of liquidity by considering only cash and cash equivalents to cover current liabilities, mirrored the trends observed in the quick ratio, declining from 2.22 in January 31, 2021, to 1.42 in January 31, 2022, and further to 1.28 in January 31, 2023. The ratio then remained relatively stable at 1.29 in January 31, 2024, and 1.25 in January 31, 2025.
Overall, the decreasing trends in these liquidity ratios suggest a potential deterioration in Crowdstrike Holdings Inc's short-term liquidity position over the years, which could raise concerns about the company's ability to meet its immediate financial obligations. It may be advisable for stakeholders to closely monitor the company's liquidity management strategies and financial performance to ensure its financial health and sustainability in the long run.
See also:
Additional liquidity measure
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 113.44 | 120.79 | 128.56 |
The cash conversion cycle of Crowdstrike Holdings Inc has shown a downward trend over the analyzed period, decreasing from 128.56 days as of January 31, 2021, to 113.44 days by January 31, 2023. This improvement indicates that the company has been able to more efficiently convert its investments in raw materials and production into cash from sales. Furthermore, it is worth noting that the cash conversion cycle dropped to 0.00 days by January 31, 2024, and remained at this level as of January 31, 2025, potentially signifying a notable enhancement in the company's working capital management. Overall, the decreasing trend in the cash conversion cycle reflects an improvement in Crowdstrike's operational efficiency and liquidity position over the analyzed period.