CrowdStrike Holdings Inc. (NASDAQ:CRWD)

The analysis of the financial ratio trends over the observed periods reveals several notable patterns and fluctuations in the company's operational efficiency and liquidity management.

Receivables Turnover

The receivables turnover ratio demonstrates moderate variability, ranging approximately between 3.5 and 5.3 times. This suggests that the company’s efficiency in collecting receivables experiences periodic fluctuations but generally maintains a stable level over time. Notably, higher turnover values occur intermittently, indicating occasional improvements in collection efficiency, followed by declines that extend the collection period.

Payables Turnover

The payables turnover ratio is highly volatile, displaying significant swings between as low as around 6 and as high as 75 times. Such variations imply irregular payment behavior or changes in supplier terms or purchasing practices. Periods with extremely high turnover may suggest very rapid payments, while low points reflect extended payment durations. This inconsistency indicates potential challenges in managing accounts payable predictably.

Working Capital Turnover

The working capital turnover ratio shows a general upward trend from values below 1 to steady levels above 1.4 in the later periods. This progression indicates an improvement in using working capital to generate sales, signifying enhanced operational efficiency and better utilization of short-term assets and liabilities over time.

Average Receivable Collection Period

The collection period for receivables fluctuates between approximately 69 and 104 days, mirroring the trends in receivables turnover. Periodic decreases in days indicate improved collections, while increases suggest slower receipt of cash from customers. The variation suggests the company faces inconsistent customer payment patterns or varying credit terms.

Average Payables Payment Period

The average period for paying payables varies widely, spanning from about 5 days to over 60 days. This wide range corresponds with the payables turnover volatility. Longer payment periods may represent strategic extensions of payment terms to preserve cash but also reflect irregular vendor payment scheduling or negotiation practices. Such variability can impact supplier relationships and cash flow management.

Overall, the company demonstrates fairly consistent management of receivables with some irregularities in efficiency. Working capital usage shows improvement indicating positive operational leverage. However, the management of payables is notably inconsistent, suggesting potential volatility in cash outflows and supplier dealings. Focusing on stabilizing payables management could enhance overall financial stability and predictability.

The company's revenue demonstrates a consistent upward trajectory across the observed periods, exhibiting steady growth from approximately $178 million to over $1.23 billion. This growth indicates a strong market demand and operational expansion over the years.

Accounts receivable, net of allowance for credit losses, also shows a general increasing trend, rising from approximately $144 million to over $1 billion. However, this item experiences more volatility compared to revenue, with some fluctuations between quarters. Notably, there are sharp increases at certain points, such as around January 2023 and January 2024, which may suggest changes in credit terms, sales mix, or collection practices during those times.

Receivables Turnover Ratio

The receivables turnover ratio fluctuates throughout the periods but generally stays within a range of about 3.5 to 5.3. This ratio demonstrates variability in how efficiently the company collects its receivables.

Periods with higher turnover ratios, such as April 2023 (5.3) and July 2024 (5.32), indicate more efficient collection processes or shorter credit terms. Conversely, lower ratios observed in January 2024 (3.58) and January 2025 (3.5) suggest slower collection or potentially more lenient credit policies during these times.

The pattern of growing revenue alongside increasing accounts receivable suggests that as sales expand, the amount of credit extended to customers also rises. The oscillations in the receivables turnover ratio imply that while the company generally maintains a consistent collection efficiency, there are periods where collections slow down, potentially affecting cash flow.

In summary, the data reflects robust revenue growth coupled with increasing receivables, while receivables turnover varies moderately, hinting at shifts in collection efficiency over time. Monitoring and managing receivables will remain important to sustain healthy liquidity as revenue continues to increase.

The financial data reveals several notable trends in the cost of revenue, accounts payable, and payables turnover over the analyzed periods.

Cost of Revenue

The cost of revenue has exhibited a consistent upward trajectory from April 2020 through January 2025. Starting from approximately $46.9 million in April 2020, it increased steadily across each quarter, reaching over $307 million by October 2025. This indicates a sustained growth in operational expenses related to producing goods or services, reflecting potential expansion in business activity or increased input costs.

Accounts Payable

Accounts payable figures show significant variability throughout the periods. Initially fluctuating at lower levels in 2020, there are sharp increases and decreases observed in subsequent quarters. Notably, spikes occur in January 2022, July 2022, and April 2025 with amounts surpassing $100 million in some quarters, contrasted by much lower balances in other periods. This inconsistency might indicate changes in payment policies, supplier negotiation terms, or timing differences in recognizing payables.

Payables Turnover Ratio

The payables turnover ratio displays considerable volatility, ranging from as high as 75.3 to lows near 6.03 across the reported quarters. A higher ratio typically suggests faster payment to suppliers, whereas lower ratios imply slower payment cycles. Noteworthy extremes include very high turnover in April 2021 and a substantial decline in the following periods. The wide fluctuations suggest inconsistent payment behavior or alterations in credit terms with vendors over time.

Overall, the data suggests a company experiencing growth in its cost base while managing payables with varying intensity. The irregularities in accounts payable and turnover ratio imply fluctuating cash management strategies or supplier interactions. Monitoring these patterns will be essential for assessing liquidity position and financial discipline going forward.

Working Capital

The working capital figures show a generally increasing trend over the periods analyzed. Beginning at approximately 693 million US dollars, working capital experiences fluctuations early on, with a notable dip around October 2020. However, from January 2021 onwards, there is a consistent upward trajectory, culminating in a peak near 3.06 billion US dollars by July 2025, followed by a slight decrease to about 2.92 billion US dollars by October 2025. This pattern suggests expanding operational liquidity and possibly greater short-term asset availability relative to liabilities over the time horizon examined.

Revenue

Revenue displays steady growth throughout the entire timeframe. Starting from roughly 178 million US dollars in April 2020, revenue rises continuously quarter-over-quarter, reaching approximately 1.23 billion US dollars by October 2025. The increment appears consistent without significant volatility, indicating an expanding sales base or increasing market traction contributing to revenue growth across the successive quarters.

Working Capital Turnover

The working capital turnover ratio experiences variability in the earlier periods, with values fluctuating between approximately 0.61 and 1.25. After the initial volatility, the ratio stabilizes and generally remains within the 1.4 to 1.6 range for most of the later period, indicating improved efficiency in using working capital to generate revenue. Periodic minor fluctuations occur, but the ratio's movement suggests enhanced operational efficiency in revenue generation relative to the working capital employed, especially from late 2021 onward.

Summary

Overall, the financial data reveal a growing operational scale, with rising working capital and revenue. The increase in working capital highlights strengthened liquidity and asset management, while the steadily growing revenue points to successful business expansion. The working capital turnover ratio, after some early variability, stabilizes in a range that reflects more efficient use of working capital resources to support revenue growth. Together, these indicators suggest positive trends in financial and operational performance over the analyzed periods.

Receivables Turnover

The receivables turnover ratio fluctuates over the periods but generally oscillates between 3.5 and 5.3. Initially, in early 2020, the ratio shows moderate values close to 4, increasing slightly during mid to late 2020. The ratio dips notably in early 2021 and early 2022, indicating a slower collection relative to the credit extended during those quarters. Peaks are observed in mid-2023 and mid-2024, reaching above 5.0, suggesting stronger efficiency in collecting receivables during these intervals. However, these peaks are followed by declines, indicating some volatility without a clear long-term upward or downward trend.

Average Receivable Collection Period

The average collection period mirrors the inverse pattern of receivables turnover, varying between approximately 69 and 104 days. Early 2020 starts with an average of 93 days, which decreases to around 77-85 days during mid-2020 to mid-2021, indicating improved collection speed. Significant increases are evident in early 2021 and early 2022, where collection days exceed 100, revealing slower receipt of payments. Mid-2023 sees the lowest collection periods near 69 days, signifying an efficient collection phase. Subsequent quarters experience fluctuations, with periods extending beyond 100 days, especially in early 2024 and 2025, suggesting recurring difficulties in maintaining short collection cycles. Overall, the pattern indicates cyclical fluctuations without progressive improvement or degradation over the full timeframe.

The payables turnover ratio exhibits significant volatility over the observed periods, with values fluctuating between a low of approximately 6.03 and a high reaching above 75. Such variability suggests inconsistent management or timing in settling payable obligations or changes in purchasing patterns relative to average payables.

Correspondingly, the average payables payment period also shows notable oscillations, ranging from as few as 5 days to as many as 61 days. This metric, representing the average number of days taken to pay suppliers, moves inversely to the payables turnover ratio, which is expected given their mathematical relationship.

Trends and Patterns

Both metrics demonstrate a pattern of spikes and troughs rather than a smooth, continuous trend. For instance, early periods show a payables turnover around the mid-twenties, dipping and then surging dramatically to values above 75 in certain quarters. Similarly, the average payment period ranges from low single digits to over 60 days, indicating variability in payment timing.

Interpretation of Volatility

This erratic movement may reflect operational changes, shifts in vendor relationships, seasonal factors affecting payment schedules, or possibly changes in credit terms agreed with suppliers. The sharp increases in the payables turnover ratio (e.g., values above 70) correspond to very short payment periods (about 5 days), implying rapid payment settlement during these quarters.

Possible Implications

The irregular payment periods might affect supplier relations; consistently delayed payments can strain vendor partnerships, while very rapid payments might reduce working capital availability. The company appears to oscillate between these extremes without a clear long-term stabilization.

Working Capital Management

The fluctuations highlight opportunities for the company to standardize its payables management. A more consistent payment period would potentially stabilize cash flow forecasting and supplier expectations. It might also enhance negotiating power with suppliers if payment terms are predictable.