CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Receivables Turnover

The receivables turnover ratio increased from 2.92 in 2020 to a peak of 3.94 in 2022, indicating an improvement in the efficiency of collecting receivables during this period. However, from 2022 onward, the ratio showed a slight decline, stabilizing around 3.5 by 2025, suggesting a modest reduction in collection efficiency but still maintaining relatively strong performance compared to 2020.

Payables Turnover

Payables turnover experienced significant volatility over the analyzed years. It dropped drastically from 105.3 in 2020 to 19.03 in 2021, followed by a further decrease reaching 8.05 in 2022. After 2022, the ratio increased to 26.82 in 2024, but then declined again to 7.58 by 2025. This fluctuation indicates varying payment practices or credit terms, with periods of slower payment to suppliers interspersed with relatively quicker payments.

Working Capital Turnover

Working capital turnover showed an overall upward trend, increasing from 0.71 in 2020 to 1.49 in 2025. Notably, the ratio nearly doubled between 2021 and 2022 and then continued to rise gradually. This suggests enhanced efficiency in utilizing working capital to generate revenues over the period.

Average Receivable Collection Period

The average receivable collection period decreased from 125 days in 2020 to 93 days in 2022, reflecting improved receivables management and faster cash collection. However, it lengthened slightly to around 102-104 days between 2023 and 2025, indicating a slight easing in collection efficiency after 2022 but still better than the initial period.

Average Payables Payment Period

There was a notable increase in the average payables payment period from a very short duration of 3 days in 2020 to a peak of 45 days in 2022. Subsequently, the period shortened to 14 days in 2024 but rose again to 48 days in 2025. These fluctuations suggest changes in payment strategies or credit terms, alternating between extending and shortening the time taken to pay suppliers.

The financial data over the six-year period indicates significant growth in revenue and accounts receivable, with moderate fluctuations in receivables turnover ratios.

Revenue

The company experienced a consistent and robust upward trend in revenue from January 2020 to January 2025. Starting at approximately $481 million, revenue increased more than eightfold to reach nearly $4 billion. This demonstrates strong sales growth and market expansion over the timeframe provided.

Accounts Receivable (net of allowance for credit losses)

Accounts receivable also displayed steady growth, rising from about $165 million in 2020 to nearly $1.13 billion in 2025. This upward movement aligns with the revenue growth, reflecting increased credit sales or extended payment terms as the business scaled.

Receivables Turnover Ratio

The receivables turnover ratio increased from 2.92 in 2020 to a peak of 3.94 in 2022, indicating an improvement in the efficiency of collecting receivables in the early years. However, from 2022 onwards, the ratio declined slightly and stabilized around the 3.5 to 3.58 range through 2025. This suggests a modest reduction in collection efficiency or longer collection periods as the company grew larger, but still points to a relatively consistent ability to convert receivables to cash.

Overall, the company exhibits strong revenue growth accompanied by proportional increases in accounts receivable. The receivables turnover ratio reflects effective but slightly varying management of credit collections over time. The data implies scaling operations with maintained credit practices, though monitoring of collection efficiency as the receivables base grows remains important.

The financial data reveals notable trends in CrowdStrike Holdings Inc.'s cost structure, liabilities, and efficiency measures over a six-year period.

Cost of Revenue

The cost of revenue has exhibited a consistent and substantial upward trajectory from 2020 through 2025. Starting at approximately $141.6 million in 2020, the cost has grown steadily each year, reaching nearly $991.5 million by 2025. This indicates an increasing scale of operations or rising expenses associated with generating revenue, with an overall growth of approximately sevenfold over the period.

Accounts Payable

Accounts payable presents a more volatile pattern. Initially low at around $1.3 million in 2020, it dramatically increased to over $12 million in 2021, peaked near $47.6 million in 2022, and then fluctuated downwards in 2023 and 2024 before surging again to approximately $130.9 million in 2025. This fluctuation suggests varying management of short-term liabilities and potential changes in payment terms or supplier agreements.

Payables Turnover Ratio

The payables turnover ratio has shown significant fluctuation and an overall declining trend from 105.3 in 2020 to 7.58 in 2025. This sharp decrease indicates that the company is taking longer to pay off its suppliers over time. The ratio was particularly low in 2022 and 2025, reflecting slower payment cycles during those years. Changes in this ratio may be influenced by the fluctuations in accounts payable and potentially deliberate adjustments in working capital management strategies.

In summary, the data indicates that while the company's cost of revenue has expanded substantially, signaling growth or higher operational costs, the management of accounts payable has been less consistent, with considerable swings that affect the payables turnover ratio. The declining payables turnover may suggest a shift toward extended payment terms or cash flow management practices that allow the company to hold onto cash longer, albeit with some irregularities in accounts payable amounts.

Working Capital

The working capital demonstrates a consistent upward trend over the six-year period. Starting at $678,540 thousand in 2020, it more than doubled by 2021, reaching $1,428,721 thousand. Although there was a slight decline to $1,164,122 thousand in 2022, the figure rebounded in subsequent years, culminating at $2,652,295 thousand by 2025. This overall increase indicates improved liquidity and greater availability of short-term assets relative to current liabilities.

Revenue

Revenue exhibits a strong and steady growth pattern throughout the period. Beginning at $481,413 thousand in 2020, revenue nearly doubled in the following year to $874,438 thousand, and this expansion accelerated in the following years. By 2025, revenue had climbed to $3,953,624 thousand, showing robust business expansion and successful market penetration.

Working Capital Turnover

The working capital turnover ratio, which measures efficiency in utilizing working capital to generate revenue, shows an initial decline from 0.71 in 2020 to 0.61 in 2021. However, from 2022 onwards, there is a significant improvement, rising from 1.25 to 1.49 by 2025. This suggests enhanced efficiency in the later years, as the company generated more revenue for each unit of working capital employed.

Overall Analysis

Overall, the data reveals a company with significant growth in both liquidity and revenue, accompanied by improving efficiency in the use of working capital. Despite a brief dip in working capital in 2022, the upward trend in both metrics and the recovering turnover ratio reflect positive operational developments and strengthening financial health over the period.

Receivables Turnover

The receivables turnover ratio exhibited a general upward trend from 2.92 in 2020 to a peak of 3.94 in 2022, indicating an improvement in the efficiency of collecting receivables during this period. However, from 2022 onwards, the ratio declined slightly, reaching 3.5 by 2025, suggesting a marginal slowdown in collection efficiency.

Average Receivable Collection Period

The average receivable collection period decreased substantially from 125 days in 2020 to 93 days in 2022, reflecting faster collection of accounts receivable. Following 2022, the collection period increased again, stabilizing around 102 to 104 days between 2023 and 2025, implying a lengthening of the collection cycle compared to the previous low point in 2022.

Overall Analysis

There is an inverse relationship between the receivables turnover and the average collection period, as expected. The initial improvement in receivables turnover and reduction in collection period up to 2022 indicates effective credit and collection management. The subsequent reversal in both metrics from 2023 onward suggests a potential softening in collection discipline or credit policy, leading to slower cash inflows from receivables. These shifts warrant attention to maintain optimal working capital management.

Payables Turnover

The payables turnover ratio exhibits significant volatility over the periods analyzed. It starts at a high point of 105.3 in January 2020, indicating very rapid payment to suppliers. By January 2021, the ratio sharply declines to 19.03 and continues to decrease to 8.05 in January 2022, suggesting a substantial slowdown in payment frequency. This trend reverses somewhat in January 2023 and January 2024, with the ratio increasing to 13.25 and then sharply to 26.82, implying accelerated payments during these years. However, in January 2025, the ratio again declines drastically to 7.58, signaling a renewed slowdown in payables turnover.

Average Payables Payment Period

The average payables payment period inversely mirrors the payables turnover ratio, reflecting the length of time taken to pay suppliers. Initially, in January 2020, payments are exceptionally prompt at 3 days. This period increases markedly to 19 days in January 2021 and further to 45 days in January 2022, indicating a substantial extension in payment terms or delays. In January 2023, the payment period reduces to 28 days and then further to 14 days by January 2024, showing an effort to expedite payments. By January 2025, the period extends sharply again to 48 days, which is the longest span recorded in the series, pointing to slower payments or extended credit terms from suppliers.

Overall Trends and Insights

The data reveals a clear inverse relationship between payables turnover and the average payables payment period, indicative of varying payment practices over the years. The firm's payment behavior fluctuates significantly between rapid settlements in 2020 and prolonged payment terms in subsequent years. The periodic acceleration and slowdown of payables turnover suggest shifts in working capital management policies, supplier negotiations, or cash flow constraints. Notably, the sharp changes in the 2024–2025 period could imply strategic adjustments or operational factors impacting the firm's payment schedules. Monitoring these metrics may provide insights into liquidity management and supplier relationships.