CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Current Ratio

The current ratio demonstrates a marked increase from 1.03 in April 2019, reaching a peak of 2.94 in July 2019, which indicates a significant improvement in the company's short-term liquidity early in the period. Subsequently, the ratio exhibits a general downward trend, declining to a low point of 1.73 in January 2023. Following this trough, a gradual recovery is observed as the ratio climbs back up, settling near 1.88 by July 2025. Overall, the current ratio reflects initial strengthening of liquidity, a period of contraction, and later stabilization with moderate improvement.

Quick Ratio

The quick ratio, which excludes inventories from current assets, follows a similar trajectory to the current ratio. It rises from 0.87 in April 2019 to a peak of 2.76 in July 2019, suggesting enhanced immediate liquidity at that time. After this peak, it declines steadily, reaching its lowest value of 1.58 in January 2025. A slight upward movement occurs thereafter, with the ratio reaching around 1.69 by July 2025. This pattern indicates fluctuations in the company's ability to meet short-term obligations without relying on inventory sales, mirroring the general trend observed in the current ratio but with slightly lower values.

Cash Ratio

The cash ratio shows an increase from 0.58 in April 2019 to 2.42 in July 2019, marking a strong initial build-up in cash and cash equivalents relative to current liabilities. Following this peak, a consistent decline occurs, bringing the ratio down to a minimum of 1.25 by January 2025, representing a reduction in the most liquid assets relative to liabilities. After this point, a modest recovery trend is noted, with the ratio rising to 1.43 by July 2025. This trend suggests a cautious but somewhat constrained management of cash reserves through the latter part of the analysed period.

Summary of Liquidity Trends

The liquidity ratios collectively highlight a period of substantial liquidity strengthening in mid-2019, followed by a gradual decline through to early 2023-2025. Despite the decline, ratios remain above 1.0 throughout, indicating the company maintains the ability to cover short-term obligations consistently. The moderate recovery in all three ratios from early 2023 onwards points to a stabilization and slight improvement in liquidity management in the most recent quarters.

The financial data indicates several notable trends in the short-term liquidity and working capital management over the observed periods.

Current Assets

There is a marked increase in current assets over time, starting from approximately $311 million in April 2019 and rising steadily to over $6.5 billion by July 2025. This growth suggests continuous expansion or accumulation of liquid resources and assets expected to be converted to cash within a year.

Current Liabilities

Current liabilities also follow an upward trajectory, growing from about $303 million in April 2019 to nearly $3.5 billion by July 2025. The rising obligations over the quarters imply increased short-term debt or payables responsibilities concurrent with business growth.

Current Ratio

The current ratio exhibits significant fluctuations. It begins at a low level of around 1.03 in April 2019, peaks notably at 2.94 in July 2019, and then trends generally downward with minor periodic rebounds, stabilizing in a range between approximately 1.7 and 1.9 after mid-2020. This ratio indicates that while the company consistently maintains current assets exceeding current liabilities, the margin of safety has tightened somewhat over time. The fluctuations suggest adjustments in managing liquidity or working capital efficiency.

Overall, the company demonstrates substantial growth in both current assets and liabilities, accompanied by a current ratio remaining above 1, reflecting an ability to cover short-term obligations. However, the gradual decline in the current ratio from its peak suggests that liabilities have grown at a slightly faster pace than assets in recent periods, warranting monitoring of liquidity risk and working capital management strategies.

Total Quick Assets

The total quick assets show a general upward trend over the entire period. Starting from approximately 262 million US dollars in April 2019, the figure increases substantially, with some fluctuations, reaching beyond 5.8 billion US dollars by July 2025. Notable jumps are seen particularly between January 2020 and January 2021, and again from January 2023 onward, indicating significant increases in liquid assets available to cover immediate liabilities.

Current Liabilities

Current liabilities also exhibit a rising trend throughout the period, starting near 303 million US dollars as of April 2019 and growing to around 3.5 billion US dollars by July 2025. The increase is relatively steady, with periodic accelerations such as from January 2021 to January 2023 and again towards the last quarters observed. Despite the growth in liabilities, the magnitude and pace align closely with the growth in quick assets, reflecting potential scaling of operations or increased short-term obligations.

Quick Ratio

The quick ratio opens with a low value of 0.87 in April 2019, spikes to a peak of 2.76 in July 2019, and then undergoes a gradual decline until stabilizing around 1.6 to 1.7 from mid-2021 to mid-2025. This indicates that although both quick assets and current liabilities are increasing, the proportionate relationship adjusts to a more consistent range above 1.5, suggesting a maintained strong liquidity position where quick assets sufficiently cover current liabilities over the long term.

Overall Insights

The data reveals that the company has significantly grown its liquid assets and corresponding current liabilities over the evaluated period. Despite the growth in liabilities, the ability to meet those obligations with quick assets has remained healthy, as demonstrated by a consistently strong quick ratio post-2020. This pattern suggests effective liquidity management in line with expanding operational scale or business activity. The initial volatility in the quick ratio stabilizes over time, indicating maturation or increased predictability in the company's short-term financial structure.

Total cash assets

The total cash assets demonstrate a significant upward trend over the entire period from April 2019 to July 2025. Beginning at approximately $175 million in April 2019, cash assets rose sharply by July 2019 and remained above $800 million through the end of 2019. There was a notable increase starting in January 2021, with amounts consistently surpassing $1.6 billion. This rising trend continues steadily through to July 2025, reaching nearly $5 billion. The growth in cash assets suggests an improving liquidity position and possibly increased financing or cash flow generation over time.

Current liabilities

Current liabilities show a consistent ascending pattern throughout the observed periods. Starting from about $303 million in April 2019, liabilities increased substantially and almost quadrupled by January 2025, reaching over $3.4 billion. While there are minor fluctuations, the general trajectory is upward, indicating that the company has increased its short-term obligations significantly over the years. The rising current liabilities may be associated with expanded operations, increased accounts payable, or other short-term financial commitments.

Cash ratio

The cash ratio exhibits higher values in the earlier periods, peaking at 2.42 in July 2019, suggesting a strong liquidity position at that time. However, following this peak, the ratio gradually decreases and stabilizes around a range between 1.2 and 1.5 for most of the subsequent periods. This means the company consistently maintained sufficient cash and cash equivalents to cover current liabilities more than once over. Minor fluctuations occur throughout, but there is a slight downward trend toward the later periods, with ratios generally close to 1.4 by mid-2025, indicating a relatively stable but slightly moderated liquidity cushion in relation to current liabilities.

General observations

The data indicate that while both total cash assets and current liabilities have increased significantly over the observed periods, cash assets have grown at a pace that generally supports maintaining a cash ratio above 1. This suggests that the company has managed its liquidity prudently, ensuring the ability to meet short-term obligations despite the rising liabilities. The consistent increase in both these metrics may reflect growth in company operations or changes in financial strategy, including capital raising or the accumulation of working capital.