Crowdstrike Holdings Inc (CRWD)
Liquidity ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.77 | 1.86 | 1.90 | 1.71 | 1.67 | 1.74 | 1.82 | 1.78 | 1.73 | 1.76 | 1.80 | 1.83 | 1.83 | 1.90 | 1.98 | 2.07 | 2.65 | 1.91 | 2.18 | 2.25 |
| Quick ratio | 1.25 | 1.42 | 1.48 | 1.38 | 1.29 | 1.35 | 1.42 | 1.41 | 1.28 | 1.36 | 1.41 | 1.44 | 1.42 | 1.54 | 1.58 | 1.72 | 2.22 | 1.51 | 1.76 | 1.81 |
| Cash ratio | 1.25 | 1.42 | 1.48 | 1.38 | 1.29 | 1.35 | 1.42 | 1.41 | 1.28 | 1.36 | 1.41 | 1.44 | 1.42 | 1.54 | 1.58 | 1.72 | 2.22 | 1.51 | 1.76 | 1.81 |
Crowdstrike Holdings Inc's liquidity ratios, specifically the current ratio, quick ratio, and cash ratio, have fluctuated over the years.
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has generally remained above 1, indicating that Crowdstrike has had more than enough current assets to cover its current liabilities. However, the current ratio has shown a decreasing trend from 2.25 in April 2020 to 1.67 in January 2024, although it improved slightly to 1.77 by January 2025.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventories from current assets. This ratio has also experienced a decrease over the years, dropping from 1.81 in April 2020 to 1.25 in January 2025. This trend suggests that Crowdstrike may have been less able to meet its short-term obligations without relying on selling inventory.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has followed a similar downward trend, declining from 1.81 in April 2020 to 1.25 in January 2025. This indicates that Crowdstrike's ability to cover its current liabilities solely with its cash holdings has weakened over the years.
Overall, while Crowdstrike has maintained ratios above 1 for most periods, the decreasing trend in these liquidity ratios suggests a potential deterioration in the company's short-term financial health and may warrant further examination of its liquidity management strategies.
See also:
Additional liquidity measure
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 105.66 | 104.88 | 105.99 | 113.44 | 110.03 | 0.00 | 114.76 | 120.79 | 117.55 | 117.25 | 119.34 | 128.56 | 110.48 | 107.94 | 122.42 |
The cash conversion cycle for Crowdstrike Holdings Inc shows fluctuations over the historical period provided. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From April 2020 to July 2020, there was a decrease in the cash conversion cycle from 122.42 days to 107.94 days, indicating an improvement in the efficiency of managing cash flow. However, from October 2020 to January 2021, there was an increase in the cycle to 128.56 days, which could suggest possible issues with managing working capital effectively.
Subsequently, the cash conversion cycle decreased to 119.34 days by April 2021 but then remained relatively stable around 117-120 days until October 2022. This stability indicates consistency in managing cash flows and working capital during that period.
Notably, there were periods where the cash conversion cycle dropped to 0 days, such as in July 2022 and January 2024, which may indicate a potential anomaly in the data or could suggest improvements in efficiency where the company managed to collect cash from its sales instantly without holding inventory or payables.
Overall, the analysis highlights the importance of monitoring the cash conversion cycle for Crowdstrike Holdings Inc to ensure efficient management of working capital and timely conversion of investments into cash flows.