Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
CrowdStrike Holdings Inc., liquidity ratios
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
The analysis of liquidity ratios over the covered periods reveals a clear downward trend, indicating a gradual decline in the company's short-term financial strength.
- Current Ratio
- The current ratio started at 2.38 in 2020 and peaked at 2.65 in 2021, indicating a strong ability to cover current liabilities with current assets during that year. However, from 2021 onward, the ratio steadily decreased, reaching 1.77 by 2025. Although it remained above 1, which generally signifies sufficient liquidity, the decline suggests a diminishing margin of safety in meeting short-term obligations.
- Quick Ratio
- Similar to the current ratio, the quick ratio demonstrated a peak in 2021 at 2.5 before declining continuously to 1.58 in 2025. This points to a reduction in the company's most liquid assets relative to current liabilities, excluding inventories, signaling a more conservative aspect of liquidity is weakening over time.
- Cash Ratio
- The cash ratio saw the highest value in 2021 at 2.22, indicating a strong capacity to cover current liabilities solely with cash and cash equivalents during that year. After this peak, it decreased steadily to 1.25 in 2025. While still above 1, the downward trend indicates less immediate cash availability relative to liabilities.
Overall, the data exhibits a consistent pattern where the liquidity ratios improved from 2020 to 2021, followed by a steady decline through 2025. Despite the decrease, liquidity ratios have remained above the threshold of 1.0, implying the company still maintains adequate short-term financial stability, though with diminishing buffers. This could suggest increased current liabilities, reduced current or liquid assets, or a combination thereof impacting liquidity.
Current Ratio
CrowdStrike Holdings Inc., current ratio calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 6,113,345) | 4,757,307) | 3,640,267) | 2,570,952) | 2,292,274) | 1,171,636) | |
| Current liabilities | 3,461,050) | 2,697,279) | 2,109,072) | 1,406,830) | 863,553) | 493,096) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.77 | 1.76 | 1.73 | 1.83 | 2.65 | 2.38 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | — | 1.10 | 1.30 | 1.23 | 1.25 | 1.40 | |
| Adobe Inc. | — | 1.07 | 1.34 | 1.11 | 1.25 | 1.48 | |
| Cadence Design Systems Inc. | — | 2.93 | 1.24 | 1.27 | 1.77 | 1.86 | |
| Fair Isaac Corp. | — | 1.62 | 1.51 | 1.46 | 0.99 | 1.29 | |
| International Business Machines Corp. | — | 1.04 | 0.96 | 0.92 | 0.88 | 0.98 | |
| Intuit Inc. | — | 1.29 | 1.47 | 1.39 | 1.94 | 2.26 | |
| Microsoft Corp. | — | 1.27 | 1.77 | 1.78 | 2.08 | 2.52 | |
| Oracle Corp. | 0.75 | 0.72 | 0.91 | 1.62 | 2.30 | 3.03 | |
| Palantir Technologies Inc. | — | 5.96 | 5.55 | 5.17 | 4.34 | 3.74 | |
| Palo Alto Networks Inc. | — | 0.89 | 0.78 | 0.77 | 0.91 | 1.91 | |
| Salesforce Inc. | 1.06 | 1.09 | 1.02 | 1.05 | 1.23 | 1.08 | |
| ServiceNow Inc. | — | 1.10 | 1.06 | 1.11 | 1.05 | 1.21 | |
| Synopsys Inc. | — | 2.44 | 1.15 | 1.09 | 1.16 | 1.19 | |
| Workday Inc. | 1.90 | 1.97 | 1.75 | 1.03 | 1.12 | 1.04 | |
| Current Ratio, Sector | |||||||
| Software & Services | — | 1.19 | 1.39 | 1.43 | 1.67 | 1.91 | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.24 | 1.41 | 1.37 | 1.55 | 1.71 | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,113,345 ÷ 3,461,050 = 1.77
2 Click competitor name to see calculations.
- Current Assets
- Current assets show a consistent and significant upward trend over the analyzed period, increasing from approximately $1.17 billion in January 2020 to around $6.11 billion in January 2025. This reflects growing liquidity and possibly an expansion in the company's short-term resources.
- Current Liabilities
- Current liabilities also increased steadily, rising from about $493 million in January 2020 to approximately $3.46 billion in January 2025. The growth in liabilities is substantial and generally parallels the increase in current assets, indicating that the company is taking on more short-term obligations as it grows.
- Current Ratio
- The current ratio exhibited a fluctuating pattern during the reviewed years. It began at 2.38 in January 2020, peaked at 2.65 in January 2021, then declined notably to 1.73 by January 2023. Thereafter, it slightly improved to 1.76 and 1.77 in January 2024 and January 2025, respectively. Despite this decline from the peak, the ratio remained above 1.7, suggesting that the company has maintained adequate short-term liquidity throughout the period.
- Overall Analysis
- The company's balance sheet reflects robust growth in both current assets and current liabilities, indicating expansion but also increased short-term financial obligations. The current ratio's decline from its early high point suggests that liabilities have grown at a faster pace relative to assets during the middle years, but the ratio stabilizing above 1.7 in more recent years implies the company preserves a reasonable margin of liquidity. These trends indicate active asset and liability management amid growth.
Quick Ratio
CrowdStrike Holdings Inc., quick ratio calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 4,323,295) | 3,375,069) | 2,455,369) | 1,996,633) | 1,918,608) | 264,798) | |
| Short-term investments | —) | 99,591) | 250,000) | —) | —) | 647,266) | |
| Accounts receivable, net of allowance for credit losses | 1,128,564) | 853,105) | 626,181) | 368,145) | 239,199) | 164,987) | |
| Total quick assets | 5,451,859) | 4,327,765) | 3,331,550) | 2,364,778) | 2,157,807) | 1,077,051) | |
| Current liabilities | 3,461,050) | 2,697,279) | 2,109,072) | 1,406,830) | 863,553) | 493,096) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.58 | 1.60 | 1.58 | 1.68 | 2.50 | 2.18 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | — | 0.98 | 1.18 | 1.12 | 1.14 | 1.29 | |
| Adobe Inc. | — | 0.95 | 1.22 | 1.00 | 1.11 | 1.34 | |
| Cadence Design Systems Inc. | — | 2.53 | 1.02 | 1.02 | 1.47 | 1.60 | |
| Fair Isaac Corp. | — | 1.52 | 1.43 | 1.37 | 0.91 | 1.19 | |
| International Business Machines Corp. | — | 0.90 | 0.82 | 0.76 | 0.69 | 0.83 | |
| Intuit Inc. | — | 0.71 | 1.25 | 1.17 | 1.65 | 2.04 | |
| Microsoft Corp. | — | 1.06 | 1.54 | 1.57 | 1.90 | 2.33 | |
| Oracle Corp. | 0.61 | 0.59 | 0.74 | 1.43 | 2.15 | 2.83 | |
| Palantir Technologies Inc. | — | 5.83 | 5.41 | 4.92 | 4.11 | 3.59 | |
| Palo Alto Networks Inc. | — | 0.82 | 0.72 | 0.75 | 0.88 | 1.85 | |
| Salesforce Inc. | 0.93 | 0.96 | 0.90 | 0.93 | 1.11 | 0.95 | |
| ServiceNow Inc. | — | 1.02 | 1.00 | 1.06 | 1.01 | 1.16 | |
| Synopsys Inc. | — | 1.88 | 0.85 | 0.85 | 0.89 | 0.94 | |
| Workday Inc. | 1.80 | 1.87 | 1.66 | 0.96 | 1.07 | 0.95 | |
| Quick Ratio, Sector | |||||||
| Software & Services | — | 1.00 | 1.21 | 1.26 | 1.51 | 1.75 | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 0.96 | 1.12 | 1.08 | 1.30 | 1.46 | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,451,859 ÷ 3,461,050 = 1.58
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in the company's liquidity position over the observed periods.
- Total Quick Assets
- There is a clear upward trajectory in total quick assets from January 31, 2020, through January 31, 2025. The value increased from approximately $1.08 billion in 2020 to about $5.45 billion by 2025. This represents a strong and consistent growth in high-quality liquid assets that can easily be converted to cash.
- Current Liabilities
- Current liabilities also show a rising trend during the same period, growing from around $493 million in 2020 to approximately $3.46 billion in 2025. This increase suggests that the company is experiencing growth in its short-term obligations, which may reflect expanded operational activities or financing strategies.
- Quick Ratio
- The quick ratio displays a fluctuating but generally declining pattern over the years. Starting at 2.18 in 2020, the ratio peaked slightly at 2.5 in 2021 but then fell sharply to 1.68 in 2022 and further stabilized around 1.58 to 1.6 from 2023 through 2025. Despite the growth in quick assets, the rising current liabilities have led to a reduction in this key liquidity ratio, indicating a comparatively lower immediate liquidity cushion relative to short-term liabilities in the later years.
In summary, while both quick assets and current liabilities have significantly increased, the company's liquidity, as measured by the quick ratio, has moderately declined after 2021 and remained stable but below the initial levels. This suggests that although the company is increasing its liquid assets, its short-term obligations are growing at a faster rate, which could imply tighter liquidity management in the forthcoming periods.
Cash Ratio
CrowdStrike Holdings Inc., cash ratio calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 4,323,295) | 3,375,069) | 2,455,369) | 1,996,633) | 1,918,608) | 264,798) | |
| Short-term investments | —) | 99,591) | 250,000) | —) | —) | 647,266) | |
| Total cash assets | 4,323,295) | 3,474,660) | 2,705,369) | 1,996,633) | 1,918,608) | 912,064) | |
| Current liabilities | 3,461,050) | 2,697,279) | 2,109,072) | 1,406,830) | 863,553) | 493,096) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 1.25 | 1.29 | 1.28 | 1.42 | 2.22 | 1.85 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | — | 0.26 | 0.50 | 0.45 | 0.52 | 0.67 | |
| Adobe Inc. | — | 0.75 | 0.95 | 0.75 | 0.84 | 1.09 | |
| Cadence Design Systems Inc. | — | 2.03 | 0.72 | 0.66 | 1.13 | 1.17 | |
| Fair Isaac Corp. | — | 0.40 | 0.37 | 0.40 | 0.35 | 0.38 | |
| International Business Machines Corp. | — | 0.45 | 0.39 | 0.28 | 0.22 | 0.36 | |
| Intuit Inc. | — | 0.54 | 0.97 | 0.90 | 1.46 | 2.00 | |
| Microsoft Corp. | — | 0.60 | 1.07 | 1.10 | 1.47 | 1.89 | |
| Oracle Corp. | 0.34 | 0.34 | 0.44 | 1.12 | 1.93 | 2.50 | |
| Palantir Technologies Inc. | — | 5.25 | 4.93 | 4.48 | 3.83 | 3.33 | |
| Palo Alto Networks Inc. | — | 0.34 | 0.31 | 0.44 | 0.57 | 1.39 | |
| Salesforce Inc. | 0.50 | 0.53 | 0.48 | 0.48 | 0.67 | 0.54 | |
| ServiceNow Inc. | — | 0.69 | 0.66 | 0.71 | 0.67 | 0.83 | |
| Synopsys Inc. | — | 1.53 | 0.53 | 0.56 | 0.65 | 0.58 | |
| Workday Inc. | 1.45 | 1.55 | 1.32 | 0.72 | 0.83 | 0.65 | |
| Cash Ratio, Sector | |||||||
| Software & Services | — | 0.58 | 0.78 | 0.82 | 1.11 | 1.32 | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.57 | 0.71 | 0.66 | 0.88 | 1.06 | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,323,295 ÷ 3,461,050 = 1.25
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibited a steady and substantial increase throughout the periods. Starting at approximately $912 million in early 2020, the cash holdings more than doubled by early 2021 to around $1.92 billion. This upward trend continued gradually over the subsequent years, reaching approximately $4.32 billion by early 2025. This consistent growth signals a strengthening liquidity position and an increasing ability to meet short-term obligations or invest in opportunities.
- Current Liabilities
- Current liabilities showed a pronounced upward trajectory during the examined timeframe, rising from roughly $493 million in early 2020 to $3.46 billion by early 2025. The liabilities increased sharply especially between 2021 and 2023, indicating possibly expanded operational scale or financing activities. This escalation in short-term obligations warrants monitoring to ensure sustainable management of the company’s working capital.
- Cash Ratio
- The cash ratio depicted a decreasing trend over the periods despite absolute growth in cash assets. It started at a relatively high 1.85 in early 2020, peaked at 2.22 in early 2021, and subsequently declined to around 1.25 by early 2025. This decline reflects that current liabilities grew at a faster pace than cash assets, which led to a reduced cushion of cash available against short-term liabilities. Although the ratio remains above 1, implying coverage of current liabilities by cash, the decreasing trend suggests a comparatively tighter liquidity margin.