CrowdStrike Holdings Inc. (NASDAQ:CRWD)

The analysis of the financial ratios over the quarters reveals several notable trends in the company's operational efficiency and liquidity management.

Receivables Turnover

The receivables turnover ratio demonstrates fluctuations over the observed periods, with an initial increase from 2.92 to a peak of around 5.32. This suggests varying effectiveness in collecting receivables, with some quarters indicating improved collection efficiency. However, intermittent declines suggest inconsistencies in receivables management or variations in credit policy and customer payment behavior.

Payables Turnover

The payables turnover presents significant volatility, with values ranging from a high of 105.3 down to single digits like 6.03, indicating irregular payment patterns to suppliers. High ratios suggest rapid payment cycles while lower ratios indicate extended payment periods. This variability may reflect changing supplier terms, cash management strategies, or operational pressures influencing payment behavior. Notably, several quarters show especially low payables turnover ratios, signifying potentially longer credit terms or delayed payments.

Working Capital Turnover

The working capital turnover ratio shows a general upward trend, starting around 0.71 and increasing steadily towards approximately 1.5 in the latter quarters. This pattern indicates improving efficiency in using working capital to generate sales, suggesting better asset utilization or inventory and payables management. The gradual increase reflects enhanced operational efficiency over time.

Average Receivable Collection Period

The average receivable collection period, measured in days, exhibits a declining trend from an initial high of 125 days to a more recent range closer to 70-80 days, with some spikes above 100 days in isolated quarters. This decrease indicates an improvement in the speed of collecting outstanding receivables on average, enhancing cash flow. Nevertheless, occasional spikes may denote temporary collection challenges or changes in credit terms.

Average Payables Payment Period

The average payables payment period also exhibits variability, fluctuating between very short periods (around 3-6 days) to extended durations exceeding 40 or even 60 days. This suggests inconsistent payment strategies or varying supplier credit terms across quarters. The inconsistency may reflect efforts to optimize cash retention or adjustments in purchasing and payment policies under different operational circumstances.

Overall, the data portrays a company with improving efficiency in managing working capital and collecting receivables, yet experiencing fluctuations in its payables management. The irregularities in payables turnover and payment periods may warrant further investigation to understand their impact on supplier relationships and liquidity. The trends in receivables and working capital turnover ratios generally indicate progress towards stronger operational efficiency and cash flow management.

Revenue Trends

The quarterly revenue demonstrates a consistent upward trajectory over the entire timeline. Starting from approximately $96 million in April 2019, revenue increases every quarter, reaching nearly $1.17 billion by July 2025. This reflects sustained growth, with notable accelerating increases particularly evident after early 2021, indicating strong market demand and effective sales performance.

Accounts Receivable Analysis

Accounts receivable figures exhibit substantial fluctuations alongside a general upward trend. The amounts grew significantly from about $87 million in April 2019 to over $1.12 billion in April 2025. However, the data also shows periods of sharp increases and declines, such as the spike to $626 million in January 2023 followed by a decline to approximately $461 million in July 2023. This volatility may suggest variability in collection cycles or changes in credit policy.

Receivables Turnover Ratio Patterns

The receivables turnover ratio, reported intermittently starting in January 2020, oscillates within a range of approximately 2.9 to 5.3 times. Higher turnover ratios appear generally correlated with periods of increased revenue growth, indicating improved efficiency in collecting receivables. Several quarters with turnover above 5.0, notably mid-2023 and late 2024, suggest particularly effective credit management during those times.

Relationships and Insights

The rising revenue paired with growing accounts receivable is typical of expanding business activity, but the volatility in receivables and turnover ratio indicates some inconsistency in collection efficiency. Periods with lower turnover ratios often align with spikes in accounts receivable balances, reflecting slower collections. Conversely, higher turnover ratios coincide with improved receivables management, supporting healthy cash flow despite increasing sales.

Summary

Overall, the financial data reveals robust revenue growth accompanied by increasing accounts receivable balances and fluctuating collection efficiency. Monitoring the receivables turnover ratio is critical to ensure that credit policies keep pace with sales expansion, minimizing risks related to cash flow and credit exposure.

Cost of Revenue

The cost of revenue demonstrates a consistent upward trend over the observed period. Beginning at approximately $29.3 million in April 2019, it rises steadily through successive quarters, reaching over $310 million by July 2025. This continuous growth suggests expanding operating activities or increasing costs associated with generating revenue, indicating business growth or inflationary pressures impacting costs.

Accounts Payable

Accounts payable show considerable volatility throughout the periods. Starting at around $9.9 million in April 2019, the figure fluctuates significantly—with sharp declines and spikes observed in various quarters. Notably, very high values appear intermittently, such as around $53.8 million in July 2022 and exceeding $130 million in January 2025. These fluctuations suggest variable payment policies or timing differences in supplier settlements and may reflect changes in procurement strategies, credit terms, or vendor relationships.

Payables Turnover Ratio

The payables turnover ratio is highly variable and lacks a consistent trend. Initial ratio data are limited, but from available figures starting at 105.3 in January 2020, the ratio generally remains volatile, ranging from lows near 6 to highs exceeding 75 at different points. This variability indicates inconsistent efficiency in managing payables, with periods of quick payments interspersed with much slower turnover. The absence of a steady trend suggests dynamic changes in working capital management or operational cash flow cycles.

Overall Insights

The financial data exhibit strong growth in cost of revenue, implying expanding scale or rising input costs. Meanwhile, the accounts payable balance and turnover ratio show irregular patterns, indicating fluctuating supplier settlement behavior. This combination could point to strategic adjustments in vendor financing or payment scheduling amidst expanding operations. The irregular payables turnover ratios may merit attention to optimize working capital management and ensure supplier relationships remain balanced despite growth pressures.

Working Capital Trend

The working capital exhibits a generally increasing trend over the analyzed period. Starting from 8,530 thousand US dollars in April 2019, there is a notable increase with some fluctuations. A significant rise occurs between January 2021 and July 2023, where working capital climbs from approximately 1,428,721 thousand to over 1,820,923 thousand US dollars. Despite some minor declines, the overall pattern shows substantial growth, peaking around 3,058,416 thousand US dollars by July 2025.

Revenue Trend

Revenue demonstrates consistent and robust growth throughout the quarters. Beginning at 96,077 thousand US dollars in April 2019, revenue steadily increases each quarter, reaching approximately 786,014 thousand US dollars by January 2024. The upward trajectory continues beyond this point, with revenue surpassing 1,168,952 thousand US dollars by July 2025. This steady increase indicates sustained business expansion and increasing market demand.

Working Capital Turnover Ratio

The working capital turnover ratio, calculated from missing initial quarters starting October 2019, shows an upward trend with some variability. Initially, it moves from 0.71 to 0.92 in early 2020, then sharply increases to 1.19 in January 2020 before declining to 0.61 in April 2021. Subsequently, it exhibits a strong recovery and stability around the 1.4 to 1.5 range in the later periods. The turnover peaks at 1.65 during January 2024, indicating improved efficiency in using working capital to generate revenue. Post this peak, the ratio stabilizes at a slightly lower but consistent level between 1.42 and 1.49.

Interpretation of Relationships

The simultaneous increase in working capital and revenue suggests that the company is scaling operations, with available capital supporting growth initiatives. The improving working capital turnover ratio over time signals enhanced operational efficiency, reflecting the company's ability to more effectively convert working capital into revenue. Occasional dips in the ratio may represent periods of increased capital investment or slower revenue growth, followed by recovery phases. Overall, these trends denote positive financial health and operational scalability.

The data reflects the performance of receivables management over multiple quarterly periods. Two key financial metrics are provided: receivables turnover ratio and average receivable collection period expressed in days.

Receivables Turnover Ratio

The receivables turnover ratio exhibits notable fluctuations across the observed time frame. Initially, starting from a value of 2.92 in April 30, 2020, the ratio increased to a peak of 4.73 by July 31, 2021. This upward trend indicates an improvement in the efficiency of collecting receivables during this period. Following this peak, there is a pattern of oscillations, with turnover ratios ranging between approximately 3.5 and 5.3.

Specifically, a high turnover ratio of 5.3 is observed in April 30, 2023, suggesting particularly effective receivable collections at that time. However, the ratio declines after this peak, reaching a low near 3.5 by April 30, 2025. The fluctuations imply that while the company generally maintains a relatively high turnover rate, there are periods of decreased collection efficiency, possibly due to seasonal or operational factors.

Average Receivable Collection Period (Days)

This metric generally moves inversely to the receivables turnover ratio, as expected. Starting with a collection period of 125 days in April 30, 2020, the average days outstanding decreases to as low as 69 days by July 31, 2023. This reduction in collection days reflects an improvement in the speed of converting receivables into cash.

However, similar to the turnover ratio, there are periodic increases in the collection period, for instance, reaching 102 days at the start of 2023 and again entering a higher range in early 2025. These spikes indicate slower collection during certain quarters, which might be attributed to external market conditions or changes in credit policies.

Overall Trends and Insights

Over the analyzed periods, the company shows a general tendency toward improving receivables collection efficiency, as evidenced by the increasing turnover ratio and decreasing average collection period from 2020 through 2023. Despite this, there remain cyclical reversals, with occasional declines in turnover and increases in collection days.

Such variability suggests that while the company’s receivables management is effective on average, it may be subject to external influences such as customer payment delays or internal factors including credit terms adjustments. Continuous monitoring and analysis will be important to maintain or further improve efficiency in receivables management.

The analysis of the payables turnover ratio and the average payables payment period over the observed quarters reveals considerable fluctuations, indicating varying payment behaviors and possibly evolving vendor relationships or operational cash flow management strategies.

Payables Turnover Ratio

The payables turnover ratio exhibits substantial volatility across the periods. After an initial high value of 105.3, the ratio declines sharply to values below 30 in subsequent quarters, with occasional short-term peaks such as 75.3 and 47.07. More recently, values oscillate between single digits and around 40, showing no consistent upward or downward trend but rather erratic changes.

Average Payables Payment Period

The average payables payment period, measured in days, corresponds inversely to the turnover ratio. Initially low at 3 days, it increases noticeably to around 15–20 days, then spikes to as high as 61 days in one quarter. Later data shows a return to shorter periods such as 10 to 14 days, with some intermittent increases up to 48 days. This pattern reflects a non-uniform payment schedule, alternating between rapid and delayed payments.

Relationship Between Metrics

The inverse relationship between the payables turnover ratio and the average payment period is consistent with expectations: lower turnover ratios correspond to longer payment periods and vice versa. The broad swings in both metrics suggest variability in the timing of settling payables, which could be influenced by changes in credit terms, cash flow management practices, or supplier negotiation outcomes.

Overall Insights

The company's management of accounts payable does not display a stable trend over the timeframe. The variability in payment periods and payables turnover may reflect adaptive strategies to changing business conditions, fluctuating cash liquidity, or external factors affecting vendor relationships. The wide range of payment days—from as low as 3 days to over 60 days—indicates flexibility but may also imply inconsistency in payment policies.