Crowdstrike Holdings Inc (CRWD)

Cash conversion cycle

		Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020
Days of inventory on hand (DOH)	days	—	—	34.53	34.16	34.38	37.08	35.22	35.53	36.15	37.46	33.98	33.43	33.77	35.78	32.72	31.11	33.16	29.42
Days of sales outstanding (DSO)	days	74.81	97.96	69.13	71.92	67.19	100.70	87.33	84.31	83.30	93.69	81.27	86.09	77.35	99.53	82.31	82.53	92.26	122.91
Number of days of payables	days	3.17	4.46	9.40	6.42	3.11	9.00	19.38	12.91	2.94	14.07	2.24	6.88	1.37	5.34	3.93	5.85	4.05	0.92
Cash conversion cycle	days	71.64	93.50	94.26	99.65	98.46	128.77	103.17	106.93	116.52	117.07	113.01	112.64	109.75	129.97	111.10	107.80	121.37	151.41

April 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 74.81 – 3.17
= 71.64

The cash conversion cycle of Crowdstrike Holdings Inc has shown fluctuations over the past few periods. The company's cash conversion cycle is a measure of how efficiently it manages its cash flows relating to its operations. A shorter cash conversion cycle is generally preferred as it indicates that the company is able to efficiently convert its investments in inventory and receivables back into cash.

Looking at the data provided, we can observe that the cash conversion cycle has ranged from a low of 71.64 days to a high of 151.41 days over the past few periods. A longer cash conversion cycle can indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers.

In the most recent period, the cash conversion cycle was 71.64 days, indicating an improvement from the previous period. This suggests that the company may have been more effective in managing its working capital and generating cash from its operations.

It is important for Crowdstrike Holdings Inc to closely monitor its cash conversion cycle and work towards reducing it further to enhance its operational efficiency and financial performance. By doing so, the company can optimize its cash flow management and potentially improve its overall financial health.