CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Receivables Turnover

The receivables turnover ratio displays fluctuations over the observed period with an initial rise starting from 2.92 and peaking around values between 4.9 and 5.32 in the latest intervals. This suggests an increasing efficiency in collecting receivables over time, although intermittently there are periods of decline, indicating some variability in collection effectiveness.

Payables Turnover

The payables turnover ratio exhibits significant volatility, with extreme peaks such as 105.3 early in the data, followed by steep declines to values in the single digits or low double digits. This pattern reflects considerable inconsistency in how promptly payables are settled. Notably, there are short periods of very high turnover indicating rapid payments, interspersed with periods of much slower turnovers.

Working Capital Turnover

The working capital turnover ratio trends upward steadily from 0.71 towards stable levels around 1.4 to 1.6 in the more recent quarters, indicating progressively improved efficiency in utilizing working capital to generate revenue. The gradual increase suggests effective management of current assets and liabilities over time.

Average Receivable Collection Period

The average receivable collection period generally decreases over time, starting near 125 days and dropping to values as low as the mid-60s at its lowest, though there are intermittent rises to over 100 days in some quarters. A downward trend in this metric corresponds to faster collection of receivables, signifying enhanced cash flow from operations.

Average Payables Payment Period

The average payables payment period varies considerably throughout the period analyzed, ranging from as low as 3 days to peaks above 60 days. This inconsistency points to fluctuating payment strategies, alternating between accelerated payments and extended payment deferrals. The lack of a clear trend indicates a reactive rather than a strategic approach to managing payables duration.

The revenue exhibits a consistent upward trend throughout the observed periods, starting from approximately $96.1 million and reaching about $1.1 billion by the latest quarter, indicating strong and sustained growth. This growth appears steady with gradual increases each quarter, reflecting expanding business operations and increased sales performance.

Accounts receivable, net of allowance for credit losses, demonstrates significant fluctuations over the periods. Initial values increase steadily, reaching a peak around January 2023, followed by notable volatility. Periods such as April 2023 and January 2024 show substantial spikes in receivables which later reduce but remain at elevated levels compared to earlier years. These variations suggest changes in credit policy or collection efficiency, as well as possible increases in sales on credit or delays in customer payments.

Receivables turnover ratios, available intermittently, generally range from about 2.92 to 5.32. The ratio tends to demonstrate oscillations without a clear long-term upward or downward trend, fluctuating quarter to quarter. Higher turnover ratios indicate efficient collections during some periods, while lower ratios suggest slower collection processes in others. Specifically, periods with declining turnover ratios coincide with spikes in accounts receivable, pointing to temporary slowdowns in cash conversion efficiency. Overall, the receivables turnover data imply variability in credit and collection management over time.

Revenue

Consistent and robust growth from $96.1 million to $1.1 billion across multiple years.

Accounts Receivable, Net

General upward trend with notable volatility; significant peaks and declines suggest variations in credit terms and collection periods.

Receivables Turnover

Variable ratio indicating fluctuating efficiency in collecting receivables; no clear trend but periods of both strong and weak turnover performance observed.

Cost of Revenue

The cost of revenue exhibits a consistent upward trend over the observed periods. Starting at approximately $29.3 million in April 2019, it progressively increases each quarter, reaching nearly $289.1 million by April 2025. This steady increase suggests continuous growth in business activities, with cost pressures rising in line with revenue generation. There are no evident periods of decline or plateau, indicating persistent expansion in operating scale or cost structure adjustments over time.

Accounts Payable

Accounts payable displays significant volatility across the quarters. The values fluctuate markedly, without a clear linear trend. For example, the payable figure drops from about $9.9 million in April 2019 to $1.1 million in July 2019, then rises and falls repeatedly with peaks such as $89.3 million in October 2022 and $130.9 million in January 2025. Such wide fluctuations could reflect irregular payment cycles, negotiated credit terms, or changes in vendor relations. The irregular pattern suggests variability in short-term liabilities management and potential working capital volatility.

Payables Turnover Ratio

The payables turnover ratio also shows high variability across the analyzed timeframe. Some quarters present exceptionally high turnover ratios, like 105.3 and 75.3, indicating very rapid payment to suppliers relative to credit purchases. Other periods have notably low ratios, such as 6.03 and 7.58, implying slower payment patterns and possibly longer credit periods. This inconsistency in turnover ratio corresponds with the fluctuating accounts payable balances and could point to shifting credit terms or operational strategies affecting payment timing. The irregular pattern highlights fluctuations in liquidity management and supplier payment practices.

Working Capital

The working capital demonstrates considerable growth over the period analyzed. Starting from a relatively low base of 8,530 thousand USD in April 2019, it rose dramatically to over 663 million USD by July 2019 and maintained a general upward trend with fluctuations. Notably, working capital peaked at approximately 2.59 billion USD by April 2025. Despite some short-term decreases, the overall trajectory indicates a strong accumulation of current assets exceeding current liabilities, enhancing the liquidity position significantly.

Revenue

Revenue consistently increased throughout the timeframe, reflecting sustained business growth. From 96 million USD in April 2019, revenues climbed steadily quarter over quarter, reaching a peak above 1.10 billion USD by April 2025. This steady growth suggests expanding market penetration and successful sales strategies. The growth rate appears relatively stable, with no significant declines or volatility, indicating robustness in the company’s top-line performance.

Working Capital Turnover

The working capital turnover ratio illustrates how effectively working capital is used to generate revenue. Data starting from October 2019 shows a gradual increase in ratio values from 0.71 to a range around 1.45 to 1.65 in the most recent periods. This upward movement suggests an improvement in operational efficiency, with the company generating more revenue per unit of working capital employed. Minor fluctuations are observed, but the general trend indicates enhanced utilization of short-term resources over time.

Summary of Trends and Insights

The financial data reveals strong growth in key financial metrics. The significant expansion in working capital supports increasing operational scale, while revenue trends reinforce positive market demand and sales effectiveness. The improving working capital turnover ratio indicates better management of current assets and liabilities in relation to sales generation. Collectively, these patterns suggest strengthening financial health and operational efficiency over the period analyzed.

The analysis of the quarterly data on receivables turnover and average receivable collection period reveals several points of interest over the observed periods.

Receivables Turnover

Starting from a low base in early 2020, the receivables turnover ratio shows a general pattern of fluctuation, with values oscillating between approximately 3.5 and 5.3. After an initial increase from 2.92 to over 4 in mid-2020, the ratio stabilized around the 4.0 to 4.5 range for several quarters. Notably, there are peaks reaching above 5.0, particularly in the periods around mid-2023 and mid-2024, suggesting periods of improved efficiency in collecting receivables. However, these peaks are interspersed with lower values around 3.5 to 3.6, indicating some inconsistency in turnover performance throughout the timeline.

Average Receivable Collection Period

The average receivable collection period exhibits a generally inverse relationship with the receivables turnover ratio, as expected. It began at 125 days early in 2020 before demonstrating a decline to as low as 69 days in mid-2023. This improvement in collection time is indicative of more efficient working capital management during this period. However, the data also shows periods where the collection days increase notably, reaching values above 100 days at several points, including early 2020, early 2023, and early 2025. These spikes in collection days correspond with the lower turnover ratios, evidencing cyclical fluctuations in collection efficiency.

Overall Trends and Insights

The data reveals a cyclical pattern in both receivables turnover and collection period, suggesting variability in the company's ability to manage receivables effectively over different quarters. Periods of high turnover ratio and low collection days indicate phases of enhanced operational efficiency, possibly reflecting improved credit policies or customer payment behavior. Conversely, intervals with lower turnover and higher collection days may point to challenges in receivables management or changing market conditions affecting payment cycles.

Given the recurring nature of these fluctuations, ongoing monitoring and targeted strategies might be necessary to stabilize and improve receivables management consistently over time.

The analysis of the payables turnover ratio and the average payables payment period reveals fluctuating patterns over the observed quarterly periods, indicating varying supplier payment behaviors and operational efficiency in managing payables.

Payables Turnover Ratio

The payables turnover ratio shows considerable volatility throughout the periods, starting at a notably high value of 105.3 and then sharply decreasing to levels below 30 in the immediate subsequent quarters. This initial sharp decline suggests a change in the rate at which the company is settling its accounts payable relative to purchases. The ratio fluctuates frequently, reaching lows around 6.03 to 8.95 in some quarters, and intermittently increasing back to values exceeding 40. This inconsistency indicates irregular payment cycles or variations in purchasing volumes and terms. A significant low point is observed around the quarters with values close to 6 and 7, followed by sharp rebounds to values like 38 and 41, implying alternating periods of slower and faster payment.

Average Payables Payment Period

The average payables payment period, measured in days, complements the turnover ratio by reflecting the time taken to pay suppliers. The data reveals wide swings from very short periods of about 3 to 5 days to extended durations exceeding 60 days. Early quarters exhibit very short payment periods, aligning with the initially high turnover ratio, indicative of rapid payments. However, certain quarters show an increase in days payable outstanding to peaks around 45 and 61 days, suggesting delayed payments or longer credit terms from suppliers during these times. This widening range demonstrates fluctuations in the company's payment policy or cash flow management.

Relationship Between Metrics

The inverse relationship between the two metrics is evident, as expected: when the payables turnover ratio declines, the average payment period increases, and vice versa. This relationship confirms that periods with lower turnover correspond to longer times taken to settle payables. Such variability could stem from operational adjustments, changes in supplier agreements, or cash flow considerations.

Overall Trends and Implications

Over the analyzed period, the absence of a consistent trend in either metric suggests challenges in maintaining steady payables management. The fluctuations imply the company may be adapting its payment strategies dynamically in response to internal or external factors. Periods of extended payment durations might exert pressure on supplier relationships, whereas rapid payments could impact the company's liquidity. Continuous monitoring and stabilization of these metrics could improve financial predictability and supplier confidence.