CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Receivables Turnover

The receivables turnover ratio exhibits a fluctuating pattern over the observed periods. It reached peaks around 5.3 in April 2023 and 5.32 in July 2024, indicating improved efficiency in collecting receivables during these intervals. However, notable declines occurred in January 2021, January 2023, and January 2025, with the ratio dropping as low as approximately 3.5 to 3.6, suggesting slower collection periods in these quarters.

Payables Turnover

The payables turnover ratio shows significant volatility, with sharp spikes and dips throughout the timeframe. The ratio surged to extremely high levels such as 75.3 in April 2021 and 64.35 in July 2025, reflecting periods where payables were settled more rapidly. Conversely, several quarters exhibited markedly low turnover figures, including ratios below 10 in multiple quarters (e.g., January 2022, October 2022, January 2025), implying slower payments to suppliers in those periods.

Working Capital Turnover

This ratio demonstrates a generally positive trend, gradually increasing from 0.81 in April 2020 to peaks above 1.6 in October 2023. This upward movement suggests progressively more efficient use of working capital over time. Despite minor fluctuations, the ratio remains above 1.4 after mid-2021, signifying consistent operational effectiveness relative to working capital invested.

Average Receivable Collection Period

The average collection period in days inversely mirrors the receivables turnover trend, with durations varying from as low as 69 days in April 2023 and July 2024 to as high as 104 days in April 2025. Periods with higher turnover ratios correspond to shorter collection times, indicating enhanced credit management, while quarters with extended collection periods coincide with lower turnover ratios, reflecting potential delays in cash inflows.

Average Payables Payment Period

Payment periods to suppliers fluctuate widely, ranging from as few as 5 days in April 2021 to as many as 61 days in October 2022. The variability suggests inconsistent payment practices, possibly influenced by cash management strategies or supplier negotiations. Periods with very short payment durations align with higher payables turnover ratios, whereas longer payment intervals correspond to lower turnover, indicating deliberate extension of payables in certain quarters.

The financial data reveals a consistent upward trajectory in revenue over the observed periods. Starting from $178,078 thousand in April 2020, the revenue steadily increases to $1,168,952 thousand by April 2025. This growth indicates a strong and sustained expansion in sales or services provided by the company during these five years.

In parallel, accounts receivable, net of allowance for credit losses, shows a generally increasing trend, moving from $144,187 thousand in April 2020 to $886,557 thousand in April 2025. Although there are fluctuations within this interval—for example, declines are visible in certain quarters such as January 2023 and July 2025—the overall pattern suggests growing amounts of credit extended to customers, aligned with increasing revenues.

The receivables turnover ratio demonstrates variability throughout the periods. Initially fluctuating around values between 3.58 and 5.3, the ratio reflects changes in the efficiency with which the company collects its receivables. Higher turnover ratios in some quarters, such as April 2023 (5.3) and July 2024 (5.32), imply quicker collection periods, while lower values, such as January 2025 (3.5), suggest slower collection efficiency during those times. This oscillation could be influenced by seasonal factors, credit policies, or customer payment behaviors.

Revenue

Exhibits a strong, uninterrupted growth trend over five years, indicating increasing market penetration or pricing power.

Accounts Receivable, Net

Shows a general increase consistent with revenue growth but features periodic declines that might reflect collections or write-offs.

Receivables Turnover Ratio

Varies across quarters, signaling fluctuations in collection efficiency; periods of higher turnover suggest improved cash inflows, whereas lower ratios indicate potential delays or credit risk.

Overall, the combined trends suggest robust sales growth accompanied by expanding credit terms or increasing customer base on credit sales. The varying receivables turnover points to some irregularities in collection speed that might warrant closer monitoring to ensure liquidity is maintained alongside the growing receivables balance.

The analysis of the quarterly financial data reveals several noteworthy trends in the cost of revenue, accounts payable, and payables turnover ratios over the observed periods.

Cost of Revenue

The cost of revenue exhibits a consistent upward trend throughout the quarters. Starting from approximately $46.9 million, it rises steadily each quarter, reaching over $310 million by the latest period. This considerable increase indicates growing expenses directly associated with generating sales, which may reflect expansion in business operations or increased sales volume.

Accounts Payable

The accounts payable figures show significant volatility with large fluctuations across the quarters. The values oscillate between lows such as $3.5 million to highs exceeding $130 million at certain points, without a clear linear trend. This variation suggests inconsistent timing or magnitude in settling obligations to suppliers, potentially indicating changes in supplier payment terms, purchasing patterns, or operational cycles.

Payables Turnover Ratio

The payables turnover ratio fluctuates markedly between periods, ranging from as low as approximately 6 to highs surpassing 75. The ratio tends to move inversely with the levels of accounts payable, where high levels of payables correspond to lower turnover and vice versa. Such fluctuations imply inconsistency in the rate at which the company settles its short-term liabilities, which may reflect varying cash management strategies or supplier negotiations over time.

Overall, the data points to a steadily increasing cost base, coupled with irregular payment patterns. The volatility in accounts payable and payables turnover suggests dynamic operational or financial management responses to changing business conditions over the analyzed timeframe.

Working Capital

The working capital demonstrates a general upward trend over the observed periods, increasing from approximately $693 million in April 2020 to over $3.05 billion by July 2025. While there are minor fluctuations, the overall trajectory reflects consistent growth, with notable acceleration starting around January 2023. This indicates improved liquidity and possibly more efficient management of short-term assets and liabilities over time.

Revenue

Revenue exhibits steady growth throughout the time frame, rising from about $178 million in April 2020 to nearly $1.17 billion by July 2025. The increase appears relatively consistent, with periodic quarter-to-quarter rises suggesting sustained demand and expansion. There is no evidence of revenue decline or stagnation, signaling successful business operations and market penetration.

Working Capital Turnover Ratio

The working capital turnover ratio fluctuates within a moderate range, starting at 0.81 in April 2020, reaching a low of 0.61 in January 2021, and peaking around 1.65 in October 2023. Post-peak, the ratio shows variability but generally remains above 1.4. The initial low indicates a period when working capital was relatively high compared to revenue, possibly due to stockpiling or slower sales. Subsequent increases suggest improving efficiency in using working capital to generate revenue, although some variability in later periods implies periodic shifts in operational or sales dynamics.

Overall Financial Insights

The data portrays a company with strong revenue growth and expanding liquidity. The rising working capital supports scaling operations, while the maintained working capital turnover ratio above 1 after early fluctuations indicates effective utilization of resources to generate sales. The trends imply positive financial health, with managed growth balancing investment in working capital and sustained revenue increases.

Receivables Turnover Ratio

The receivables turnover ratio displays a fluctuating pattern over the periods, ranging approximately between 3.5 and 5.3. The ratio peaks at 5.3 on April 30, 2023, and again reaches values above 5 near mid to late periods such as July 31, 2024. Notably, there are intermittent dips, with lower points around January 31, 2021, January 31, 2023, and January 31, 2025, where the ratio drops below 3.6. This indicates that the efficiency in collecting receivables varies across quarters, with periods of stronger performance interspersed with slower turnover.

Average Receivable Collection Period

The average receivable collection period inversely correlates with the receivables turnover ratio, showing days between roughly 69 and 104. The shortest collection periods occur around April 30, 2023, and July 31, 2024, both near 69 days, coinciding with peaks in turnover ratio. Conversely, the longest collection periods appear near January 31 of 2021, 2023, and 2025, each exceeding 100 days. This pattern suggests cyclical delays in receivables collections during certain quarters, potentially reflecting changes in credit terms or collection efficiency.

Trend Analysis

Overall, the data reveals a cyclical nature in receivables management, with alternating quarters of higher and lower turnover. The trend does not show a consistent improvement or deterioration but rather periodic variability. The intervals with higher turnover and shorter collection periods imply improved cash flow and credit control, whereas the quarters with lower turnover and extended collection periods may indicate challenges in collection or changes in customer payment behavior.

Insight

Management may benefit from investigating the causes behind the repeated quarterly declines in turnover and extended collection periods to identify operational or market factors contributing to these fluctuations. Stabilizing receivables turnover and reducing collection days could enhance liquidity and financial stability.

Payables Turnover Ratio Trends

The payables turnover ratio exhibits significant volatility throughout the periods analyzed. Starting at 24.39, the ratio experiences fluctuations, reaching notable peaks such as 75.3 in April 2021 and 64.35 in April 2025. Conversely, sharp decreases occur, with values dropping to as low as 6.03 in October 2022 and 7.58 in July 2025. This irregular pattern suggests inconsistent management of payables relative to cost of goods sold or purchasing activities across quarters.

Average Payables Payment Period Trends

The average payables payment period displays a similarly volatile pattern, inversely related to the payables turnover ratio. It decreases to as few as 5 days in April 2021 and rises dramatically to 61 days in October 2022 and 48 days in April 2025. Periods with high payment durations coincide with low payables turnover ratios, indicating lengthier intervals in settling payables.

Relationship Between Ratios

An inverse relationship is evident between the payables turnover and the average payables payment period. When payables turnover rises, the average payment period falls, and vice versa. This correlation aligns with typical financial behavior where a higher turnover implies quicker payment cycles, and longer payment periods reduce turnover frequency.

Operational Implications

The significant fluctuations in both ratios suggest variability in the company's payment practices, which may impact supplier relationships and credit terms. Periods with rapid payables turnover and short payment cycles indicate efficient payment processing but may affect cash reserves negatively. Conversely, longer payment periods could reflect cash preservation strategies but risk straining supplier relations.

Overall Summary

The data reveals irregular payables management with no consistent trend toward improvement or deterioration. The pronounced swings in both payables turnover and payment period metrics highlight potential areas for enhanced cash management strategies to balance liquidity needs with supplier obligations.