CrowdStrike Holdings Inc. (NASDAQ:CRWD)

The financial liquidity ratios over the multi-year period show distinct trends and fluctuations that provide insight into the company's short-term financial health and efficiency in managing its current assets relative to liabilities.

Current Ratio

The current ratio demonstrates a general decline from a high of 2.65 in early 2021 to a range generally around 1.7 to 1.9 in later periods. After peaking in January 2021, the ratio steadily decreased through 2022, reaching lows around 1.73 to 1.76. However, starting in mid-2023, there is a slight recovery toward the 1.8 to 1.9 range. This suggests a tightening in current asset coverage against current liabilities over time, indicating a potential reduction in short-term liquidity buffers.

Quick Ratio

The quick ratio follows a similar pattern to the current ratio, albeit at slightly lower absolute values because it excludes inventory. It peaked at 2.5 in January 2021, then declined gradually over subsequent quarters, reaching levels mostly between 1.58 and 1.72 from mid-2022 onward. This trend signals a reduction in the company's most liquid assets available to cover immediate liabilities, reflecting modestly tightened liquidity conditions post-2021.

Cash Ratio

The cash ratio consistently runs below the current and quick ratios, as expected, since it only considers cash and cash equivalents. It peaked at 2.22 in January 2021 and declined steadily to below 1.3 by early 2023. Although there are minor fluctuations, the cash ratio generally remains between 1.25 and 1.48 thereafter, showing a reduced cushion of liquid cash relative to current liabilities over time. This could suggest the company has been utilizing its cash reserves more aggressively or facing increased short-term liabilities.

Overall, all three liquidity ratios show a peak around January 2021, followed by a downward trend indicating that the company's short-term liquidity position has tightened over the analyzed quarters. While there is a slight improvement in current and quick ratios from mid-2023, the cash ratio remains relatively lower, implying less cash held in reserve. These patterns may reflect strategic financial management decisions or changes in operational funding requirements impacting current asset composition and liquidity availability.

Current assets

Current assets show a consistent upward trend over the analyzed periods. Starting at approximately 1.25 billion USD, the value generally increases each quarter, reaching a high point of around 6.11 billion USD by early 2025. This steady growth indicates continuous strengthening of liquid or near-liquid resources, which can support operational needs and leverage potential investment opportunities.

Current liabilities

Current liabilities also demonstrate a rising trajectory, moving from about 555 million USD initially to nearly 3.5 billion USD over the same timeframe. This increase reflects growing short-term obligations. Although liabilities are expanding, the rise is proportionate to the increase in current assets, which is a notable factor in assessing liquidity and financial stability.

Current ratio

The current ratio, representing the relationship between current assets and current liabilities, shows some volatility but generally remains within a moderate range. It begins at 2.25, experiences a decline to a low close to 1.73, and then stabilizes around 1.7 to 1.9 in subsequent periods. These values suggest that while liquidity slightly decreased in certain quarters, the company maintained a current ratio above 1.5 consistently, indicating the ability to meet short-term liabilities with current assets over the entire period.

Overall analysis

The company exhibits a pattern of solid growth in both current assets and current liabilities. Despite the increasing liabilities, the current ratio maintains a level indicating adequate liquidity. The gradual decline followed by stabilization in the current ratio suggests that the company managed to balance asset growth and obligations effectively, avoiding potential liquidity concerns. The ability to sustain a current ratio near or above 1.7 reflects prudent financial management in the short-term financial position.

The analysis of the quarterly financial indicators reveals evolving liquidity dynamics over the examined period.

Total Quick Assets

Total quick assets showed a general upward trend throughout the time frame. Starting at approximately 1.15 billion USD, the figure escalated with noticeable increments, reaching above 5.8 billion USD by the last quarter. This growth suggests an increasing availability of highly liquid assets, enhancing the company’s capacity to meet short-term obligations without relying on inventory liquidation.

Current Liabilities

Current liabilities consistently increased from around 555 million USD to nearly 3.6 billion USD over the quarters. The steady rise indicates expanding short-term financial commitments. However, this growth was proportionally less steep compared to quick assets, implying that the firm's liabilities grew but not as rapidly as its liquid asset base.

Quick Ratio

The quick ratio exhibited some fluctuations but remained well above 1.0 throughout, indicating sustained liquidity. Initially, the ratio was around 2.07, displaying strong short-term financial health. It then experienced a decline reaching lows near 1.58 but stabilized thereafter, oscillating between roughly 1.58 and 1.72. This pattern reflects that, while the company’s liquidity reduced slightly relative to liabilities during periods of asset and liability growth, it maintained a comfortable margin to cover immediate liabilities.

Overall, the company demonstrated a robust improvement in liquid asset holdings alongside increasing current liabilities. The quick ratio's stability above the critical threshold of 1 conveys effective liquidity management, safeguarding against potential short-term financial stress despite expansion in obligations.

Total Cash Assets

The total cash assets exhibit a generally upward trend over the analyzed period. Starting from approximately 1 billion USD in April 2020, there is a notable increase by early 2021, peaking around 1.9 billion USD by January 2021. Following this, the cash assets continue to grow steadily with minor fluctuations, reaching a peak exceeding 4 billion USD in mid-2024. Towards the end of the period, a slight decline is observed, with values settling just below 5 billion USD in late 2025, indicating overall strong liquidity growth with some recent stabilization or slight reduction.

Current Liabilities

Current liabilities show a consistent increasing pattern throughout the timeframe. Beginning at around 555 million USD in April 2020, these liabilities almost double by early 2022, surpassing 1.4 billion USD. The upward trajectory continues with occasional periods of moderation, reaching a high near 3.5 billion USD by early 2025. A slight decrease is seen near mid-2025, followed by a moderate rise again. This increase in liabilities suggests growing obligations consistent with the company's expansion but possibly also increased operational or financial commitments.

Cash Ratio

The cash ratio demonstrates some variability but tends to remain above 1.0 throughout the periods, indicating that the company consistently holds cash assets exceeding current liabilities. The ratio starts at 1.81 in April 2020, decreases below 1.5 by the end of 2020, then spikes to 2.22 at the start of 2021, signaling a peak in liquidity relative to short-term obligations. Subsequently, the ratio gradually declines and stabilizes around 1.3 to 1.4 in the later periods, with minor fluctuations. The general downward trend in the ratio, despite rising cash assets, reflects the assumption of higher current liabilities at a somewhat faster pace.