CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Goodwill

The goodwill balance exhibits a consistent upward trend across the periods analyzed. Starting from a relatively modest figure in early 2020, it increased significantly by 2021, and continued to grow sharply through to 2025. This indicates ongoing acquisitions or reassessments resulting in higher recorded goodwill values over the years.

Developed Technology

This intangible asset rose substantially from 2020 to 2021 and then again in 2022. After a period of slower growth in 2023, the balance recorded further strong increases in 2024 and 2025. The pattern suggests sustained investment or capitalizations in developed technology, reflecting emphasis on innovation or technological advancements.

Customer Relationships

The recorded amount for customer relationships expanded steadily over the observed years. The asset saw the most pronounced growth between 2020 and 2022, followed by relatively slower yet positive increments in subsequent years, indicating the company’s focus on maintaining or acquiring customer-related intangible assets.

Intellectual Property and Other Acquired Intangible Assets

This category grew from a low base in 2020 with a notable acceleration by 2024, remaining relatively stable from 2024 to 2025. This suggests targeted acquisitions or valuations of intellectual property and other intangibles became more prominent in the later years.

Intangible Assets, Gross Carrying Amount

The gross carrying amount of intangible assets showed a strong upward trajectory from 2020 through 2025. The increments were most significant between 2020 and 2022, followed by continued growth, which aligns with increases in the various intangible asset components, reflecting overall asset base expansion.

Accumulated Amortization

Accumulated amortization increased in absolute terms each year, indicating ongoing amortization of intangible assets. The growth in accumulated amortization became more rapid from 2021 onwards, consistent with the rising carrying amounts and possibly shorter amortization schedules or earlier acquisition dates for some assets.

Intangible Assets, Net

Net intangible assets, calculated as gross carrying amount less accumulated amortization, exhibited overall rising figures from 2020 to 2025 despite fluctuations. After a peak in 2022, there was a slight decline in 2023, but the balance recovered and grew substantially in 2024 and 2025, demonstrating effective management of asset values post-amortization.

Goodwill and Intangible Assets, Net

The combined net figure of goodwill and intangible assets grew markedly over the period. There was a rapid rise from 2020 to 2022, stabilization in 2023, and notable increases in 2024 and 2025. This comprehensive measure underscores the sizable increase in total intangible asset value backing the company’s balance sheet, reflective of strategic acquisitions and investment in intangible resources.

The financial data over the reported periods displays significant growth in both total assets and stockholders' equity, with observable differences between reported and goodwill adjusted figures. The trends provide insight into the company's asset base expansion and equity position, as well as the impact of goodwill adjustments on these metrics.

Total Assets

Reported total assets have demonstrated a consistent upward trajectory from US$1,404,906 thousand in 2020 to US$8,701,578 thousand projected for 2025, representing a strong growth trend over the six-year span.

Adjusted total assets, which exclude goodwill, also follow an increasing trend but at a slightly lower level compared to the reported figures. These assets grew from US$1,397,184 thousand in 2020 to a projected US$7,788,773 thousand in 2025.

The divergence between reported and adjusted totals widens progressively over time, indicating an increasing contribution of goodwill to total asset values. This suggests the company has been acquiring intangible assets or completing acquisitions that add significant goodwill to its balance sheet.

Stockholders’ Equity

Reported total stockholders’ equity shows a rising pattern, starting at US$742,107 thousand in 2020 and reaching an anticipated US$3,279,494 thousand in 2025. This indicates strengthening shareholder value and retention of earnings or capital injections over the period.

In contrast, the adjusted stockholders’ equity figures, which account for goodwill adjustments, portray a less consistent trend. They increase from US$734,385 thousand in 2020 to a peak of US$787,008 thousand in 2021 but then experience a notable decrease to US$609,319 thousand in 2022 before rising again to US$2,366,689 thousand projected for 2025.

The dip in adjusted equity in 2022 may point to impairments, write-downs, or other adjustments affecting intangible assets, reflecting a more volatile equity position when goodwill is excluded.

From 2023 onwards, the adjusted equity rebounds strongly, mirroring the increasing reported equity but still remaining below the reported figures, reinforcing the impact of goodwill on total equity.

Summary Insights

The overall upward trend in reported assets and equity reflects robust growth and capitalization of the company.

The growing gap between reported and adjusted figures underscores the material presence of goodwill and intangible assets on the balance sheet, likely attributable to acquisitions or investments in intangible resources.

The adjusted equity's temporary decline in 2022 suggests a challenging period in terms of intangible asset valuation, possibly due to impairment charges or re-assessments.

This volatility highlights the importance of segregating goodwill effects to gain a clearer understanding of the underlying tangible financial position and equity strength.

Total Asset Turnover

The reported total asset turnover ratio indicates a gradual increase from 0.34 in 2020 to a peak of 0.46 in 2024, followed by a slight decline to 0.45 in 2025. The adjusted total asset turnover, which accounts for goodwill adjustments, exhibits a similar improving trend but with slightly higher values, rising from 0.34 to 0.51 between 2020 and 2025. This trend suggests an improving efficiency in asset usage over the period, particularly when adjusted for goodwill.

Financial Leverage

Reported financial leverage increased significantly from 1.89 in 2020 to 3.53 in 2022, then decreased steadily to 2.65 by 2025. The adjusted financial leverage shows a more pronounced rise, reaching 5.25 in 2022, followed by a decline to 3.29 in 2025. This pattern indicates a period of increased reliance on debt or equity financing up to 2022, with a subsequent deleveraging phase. The adjustments for goodwill suggest that intangible assets may have heightened perceived financial leverage during the middle years.

Return on Equity (ROE)

The reported ROE remains negative through the majority of the period, improving from -19.1% in 2020 to near break-even at -0.59% in 2025, with a positive peak of 3.88% in 2024. The adjusted ROE displays more volatility and lower values particularly around 2022, plunging to -38.54%, and although improving afterward, it remains negative at -0.81% in 2025. This suggests persistent challenges in generating positive equity returns, with goodwill adjustments revealing a more adverse impact on shareholder returns, especially noticeable in the 2022 downturn.

Return on Assets (ROA)

The reported ROA figures are negative initially, moving from -10.09% in 2020 to -3.65% in 2023, then turning slightly positive at 1.34% in 2024 before dipping back to -0.22% in 2025. Adjusted ROA closely follows this trend but with marginally worse values, reaching a low of -7.33% in 2022 and improving to 1.49% in 2024 before a slight decline to -0.25% in 2025. This indicates ongoing difficulties in asset profitability, though there is some evidence of recovery around 2024, both before and after goodwill adjustment.

Summary

Overall, the data reveals a pattern of improving operational efficiency as seen in rising total asset turnover ratios, alongside fluctuating financial leverage which peaked in 2022 before easing. Profitability measures on both equity and assets remain negative or marginally positive, highlighting ongoing profitability challenges, with goodwill adjustments exacerbating the negative returns in some years. The recovery signs in 2024 suggest potential improvement in financial performance, though returns quickly moderated again into 2025.

The financial data presents a comprehensive view of the company's asset base and efficiency of asset utilization over a six-year period. The reported total assets show a consistent and substantial increase each year, growing from approximately $1.4 billion in January 2020 to about $8.7 billion by January 2025. This reflects significant expansion and investment in asset accumulation. Similarly, adjusted total assets, which exclude goodwill effects, also exhibit strong growth but at a slightly moderated pace compared to reported total assets, rising from around $1.4 billion to nearly $7.8 billion in the same timeframe.

Regarding asset turnover, which measures the efficiency with which the company uses its assets to generate revenue, both reported and adjusted turnover ratios display an improving trend. The reported total asset turnover begins at 0.34 in January 2020 and rises to a peak of 0.46 by January 2024, slightly declining to 0.45 in January 2025. The adjusted total asset turnover shows an even stronger upward trajectory, increasing from 0.34 to 0.51 over the period, maintaining this peak level into the final year.

Total Assets

Demonstrated a robust growth trend, nearly sextupling over five years, indicating substantial asset accumulation and possibly acquisitions or capital expenditures driving expansion.

Adjusted total assets followed a similar but more conservative growth, suggesting that goodwill adjustments moderately reduce asset valuation but do not materially alter the growth narrative.

Total Asset Turnover

Both reported and adjusted turnover ratios improved over time, pointing to enhanced efficiency in asset use to generate sales.

The adjusted turnover consistently remains slightly higher than the reported figure from 2021 onwards, implying that goodwill adjustments reveal a more efficient asset base in operational terms.

The marginal decline in the reported ratio in the final year while adjusted ratio remains stable may indicate goodwill amortization or impairments affecting reported assets without impacting operational efficiency.

In summary, the company exhibits strong asset growth with improving asset utilization efficiency. The adjustments for goodwill provide a nuanced view that reveals higher operational efficiency than reported figures alone suggest, emphasizing the company's effective deployment of its net asset base to generate revenue.

The analysis of the financial data over the six-year period reveals several noteworthy trends in the company's asset base, equity, and financial leverage ratios, both on a reported basis and when adjusted for goodwill.

Total Assets

The reported total assets demonstrate a consistent upward trajectory, increasing from approximately 1.40 billion USD in early 2020 to about 8.70 billion USD by early 2025. The adjusted total assets, which exclude goodwill, also show growth but at a slightly moderated pace, rising from roughly 1.40 billion USD to 7.79 billion USD over the same period. This divergence indicates that goodwill constitutes a growing yet stable proportion of total assets.

Stockholders' Equity

Reported stockholders' equity increases steadily, with a pronounced acceleration from 1.46 billion USD in 2023 to nearly 3.28 billion USD in 2025. Adjusted equity, which removes goodwill effects, shows a more volatile pattern. After initially increasing from about 734 million USD in 2020 to nearly 787 million USD in 2021, adjusted equity declines significantly to approximately 609 million USD in 2022. However, it recovers thereafter, reaching around 2.37 billion USD by 2025. This fluctuation suggests one-time adjustments or impairments affecting equity when goodwill is excluded.

Financial Leverage

Financial leverage ratios exhibit differences when calculated on a reported versus adjusted basis. The reported leverage ratio rises sharply from 1.89 in 2020 to peak at 3.53 in 2022, before gradually declining to 2.65 by 2025. The adjusted leverage starts at a similar point but escalates more dramatically, reaching a peak of 5.25 in 2022, then falls to 3.29 by 2025. This indicates that excluding goodwill from equity calculations accentuates leverage, especially in the middle years, highlighting potential risks related to capital structure and reliance on intangible assets.

In summary, the company has experienced robust growth in asset size and equity value on a reported basis. However, adjustments excluding goodwill reveal more pronounced volatility in equity and higher leverage ratios, particularly around 2022. This suggests that the intangible asset component plays a significant role in the company’s financial structure, and that underlying leverage and equity strength may be less substantial when this component is excluded. The decreasing trend in leverage ratios from 2023 onward implies improving balance sheet strength and potentially lower financial risk in recent years.

The analysis of the financial data reveals several notable trends in both reported and goodwill adjusted figures over the six-year period ending January 31, 2025.

Stockholders’ Equity (Reported vs. Adjusted)

Reported total stockholders’ equity shows consistent growth year over year, beginning at approximately $742 million in 2020 and increasing steadily to about $3.28 billion by 2025. This reflects a more than fourfold increase over the period.

In contrast, the adjusted total stockholders’ equity, which excludes goodwill, displays a less consistent pattern. It rises from around $734 million in 2020 to roughly $787 million in 2021 but then declines sharply to about $609 million in 2022. Following this decline, a steady recovery occurs through 2025, reaching approximately $2.37 billion. Despite this recovery, the adjusted equity remains consistently below the reported equity, suggesting a significant impact from goodwill on the reported figures.

Return on Equity (Reported vs. Adjusted)

The reported ROE demonstrates significant volatility throughout the period, starting with negative returns of -19.1% in 2020 and improving somewhat but remaining negative in subsequent years until achieving a positive margin of 3.88% in 2024, followed by a slight decline to -0.59% in 2025.

The adjusted ROE follows a similar but more pronounced trend with greater negative values, illustrating more considerable volatility and deeper losses. It begins at -19.31% in 2020 and worsens sharply to -38.54% in 2022. Some improvement is visible by 2024, turning positive at 5.36%, but then it again slightly decreases to -0.81% in 2025.

Insights and Interpretation

The consistent growth in reported equity suggests successful capital accumulation or retained earnings over time. However, the fluctuations and overall lower values in adjusted equity indicate that goodwill adjustments remove significant intangible asset values, revealing a more conservative equity base.

The volatile and mostly negative ROE figures, especially when adjusted for goodwill, imply challenges in generating profitable returns on equity. The improvement in 2024 shows a temporary recovery in profitability, but the renewed decline in 2025 suggests ongoing operational or financial difficulties affecting efficiency in equity utilization.

The analysis of the financial data over the reported periods reveals significant trends in asset growth and returns on assets both before and after goodwill adjustment.

Total Assets

Reported total assets demonstrate a consistent and substantial upward trajectory from approximately $1.40 billion in 2020 to about $8.70 billion in 2025, indicating aggressive growth or asset acquisition strategies during the period. Adjusted total assets, which exclude goodwill, follow a similar pattern but show slightly lower values at each date, ranging from around $1.40 billion in 2020 to $7.79 billion in 2025. This suggests that goodwill represents a material component of the total asset base but does not distort the overall growth pattern.

Return on Assets (ROA)

The reported ROA percentages fluctuate significantly throughout the years. Initially, ROA is negative at -10.09% in 2020, improving to -3.39% in 2021, then worsening again in 2022 to -6.49%, followed by an improvement to -3.65% in 2023. Notably, in 2024, ROA turns positive at 1.34%, before slightly declining to -0.22% in 2025. The adjusted ROA reflects a similar overall trend but consistently reports slightly lower values, beginning at -10.15% in 2020 and showing a negative pattern through 2025 with a brief positive peak in 2024 at 1.49%. This implies that adjustments for goodwill slightly affect profitability metrics but do not materially change the overall performance trend.

Insights and Observations

The rapid growth in total assets suggests a period of expansion or investment, but this has not yet translated into stable positive returns on assets. The volatility and mostly negative ROA values point to challenges in converting asset growth into profitability, except for the notable improvement in 2024. The small divergence between reported and adjusted figures underlines the importance of considering intangible assets, such as goodwill, when evaluating the company’s asset base and profitability. Overall, the data points to a growth phase with improving but still unstable profitability metrics as of the latest period.