Crowdstrike Holdings Inc (CRWD)
Liquidity ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.76 | 1.73 | 1.83 | 2.65 | 2.38 |
| Quick ratio | 1.60 | 1.58 | 1.68 | 2.50 | 2.18 |
| Cash ratio | 1.29 | 1.28 | 1.42 | 2.22 | 1.85 |
Based on the liquidity ratios of Crowdstrike Holdings Inc over the past five years, we observe the following trends:
1. Current Ratio: The current ratio measures the company's ability to cover its short-term obligations with its current assets. Crowdstrike's current ratio has shown a slight fluctuation over the years, ranging from 1.73 to 2.65. Generally, a ratio above 1 indicates that the company has more current assets than current liabilities, with a higher ratio signaling better short-term liquidity.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Crowdstrike's quick ratio has been relatively stable, ranging from 1.58 to 2.50. A quick ratio above 1 indicates that the company can meet its short-term liabilities without relying on the sale of inventory.
3. Cash Ratio: The cash ratio focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents. Crowdstrike's cash ratio has ranged from 1.28 to 2.22 over the period under review. A cash ratio above 1 implies that the company holds sufficient cash to settle its short-term obligations without relying on other current assets.
Overall, Crowdstrike Holdings Inc has maintained solid liquidity positions over the past five years, with current, quick, and cash ratios consistently above 1. This indicates that the company has sufficient liquid assets to meet its short-term financial obligations and suggests a strong financial health in terms of liquidity management.
See also:
Additional liquidity measure
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 93.50 | 128.36 | 117.09 | 130.05 | 151.40 |
The cash conversion cycle of Crowdstrike Holdings Inc has shown fluctuations over the past five years, with a range from 93.50 days to 151.40 days. The company's ability to convert its resources efficiently into cash has improved compared to the prior year, as evidenced by the decrease in the cash conversion cycle from 128.36 days in January 2023 to 93.50 days in January 2024. This indicates that Crowdstrike has been more effective in managing its cash flow, working capital, and operating cycle during the most recent fiscal year. However, it is important to monitor this metric closely to ensure sustained efficiency in cash management and liquidity for the company.