CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Goodwill and intangible assets exhibited substantial growth over the observed period. A significant increase in goodwill is apparent, alongside consistent expansion in most categories of intangible assets. The analysis below details these trends.

Goodwill

Goodwill experienced a dramatic increase, rising from $83.6 million in 2021 to $1.36 billion in 2026. The most substantial increase occurred between 2023 and 2025, suggesting potentially large acquisitions during those periods. The growth rate appears to be accelerating in later years.

Developed Technology

Developed technology showed consistent growth, increasing from $14.5 million in 2021 to $202.6 million in 2026. While the absolute increase is substantial, the growth rate appears relatively stable year-over-year.

Customer Relationships

Customer relationships also demonstrated growth, albeit at a slower pace than developed technology. The value increased from $3.8 million in 2021 to $25.4 million in 2026. Growth was relatively consistent throughout the period.

Intellectual Property and Other Acquired Intangible Assets

This category experienced significant growth between 2021 and 2024, increasing from $0.4 million to $15.8 million. However, growth plateaued between 2024 and 2026, remaining relatively stable around $15.8 million to $15.9 million.

Intangible Assets, Gross Carrying Amount

The gross carrying amount of intangible assets increased steadily from $18.7 million in 2021 to $243.8 million in 2026, reflecting the combined growth of the individual intangible asset categories.

Accumulated Amortization

Accumulated amortization increased consistently throughout the period, moving from a negative value of $3.0 million in 2021 to a negative $107.1 million in 2026. The increasing negative value indicates growing amortization expense related to the intangible assets.

Intangible Assets, Net

Net intangible assets increased from $15.7 million in 2021 to $136.7 million in 2026. While growing, the rate of increase slowed in the later years, potentially due to the increasing impact of accumulated amortization.

Goodwill and Intangible Assets, Net

The combined net value of goodwill and intangible assets increased significantly, from $99.2 million in 2021 to $1.50 billion in 2026. This growth is primarily driven by the substantial increase in goodwill. The overall trend indicates a growing reliance on acquired intangible value.

In summary, the organization demonstrates a pattern of significant investment in, and growth of, both goodwill and intangible assets. The increasing goodwill balance suggests a strategy of growth through acquisition. The consistent growth in developed technology and customer relationships indicates ongoing investment in internal development and customer base strengthening. The increasing accumulated amortization warrants continued monitoring to assess the impact on future profitability.

An examination of the financial information reveals a consistent pattern of adjustments made to total assets and total stockholders’ equity over the period from January 31, 2021, to January 31, 2026. These adjustments appear to relate to the removal of goodwill and intangible assets, resulting in lower reported values when compared to the initially reported figures.

Total Assets

Reported total assets demonstrate a consistent upward trend, increasing from US$2,732,533 thousand in 2021 to US$11,086,684 thousand in 2026. However, adjusted total assets, which presumably exclude goodwill and related items, exhibit a similar upward trajectory, albeit at a lower magnitude. The difference between reported and adjusted total assets widens over time, indicating a growing amount of goodwill or intangible assets being removed through adjustments. The largest absolute difference between reported and adjusted total assets is observed in 2026, at US$1,363,294 thousand.

Total Stockholders’ Equity

Reported total stockholders’ equity also shows a clear increasing trend, rising from US$870,574 thousand in 2021 to US$4,428,390 thousand in 2026. Adjusted total stockholders’ equity follows a similar pattern of growth, but consistently remains below the reported equity values. The gap between reported and adjusted equity is most pronounced in 2021 and 2022, decreasing in subsequent years, but remaining substantial. This suggests that the adjustments related to goodwill and intangibles have a more significant impact on equity in the earlier periods of the observed timeframe.

The consistent adjustments to both total assets and total stockholders’ equity suggest a systematic approach to accounting for goodwill and intangible assets. The increasing divergence between reported and adjusted figures indicates a potential accumulation of these items on the balance sheet, which are subsequently removed through adjustments. Further investigation into the nature of these adjustments and the underlying reasons for the removal of goodwill and intangible assets would be necessary to fully understand their impact on the company’s financial position and performance.

The magnitude of the adjustments relative to the reported figures appears to decrease over time for stockholders’ equity, while remaining substantial for total assets. This could indicate a change in the company’s acquisition strategy or a refinement in the valuation of intangible assets.

The financial metrics demonstrate a consistent impact from adjusting for goodwill and intangible assets. Generally, removing goodwill results in modestly higher asset turnover ratios and significantly higher financial leverage ratios, while the effect on return on equity (ROE) and return on assets (ROA) is a decrease in reported values.

Total Asset Turnover

Reported total asset turnover exhibited an increasing trend from 0.32 in 2021 to 0.46 in 2023, followed by stabilization around 0.45-0.46 in 2024 and 2025, and a slight decrease to 0.43 in 2026. The adjusted total asset turnover consistently shows higher values than the reported ratio, increasing from 0.33 in 2021 to 0.51 in 2024 and 2025, before decreasing to 0.49 in 2026. This suggests that goodwill and intangible assets contribute to a lower efficiency in utilizing assets as measured by this ratio.

Financial Leverage

Reported financial leverage decreased from 3.14 in 2021 to 2.50 in 2026, indicating a declining reliance on debt financing. However, the adjusted financial leverage ratios are notably higher, starting at 3.37 in 2021 and decreasing to 3.17 in 2026. The adjusted ratios consistently exceed the reported ratios, and the difference widens in 2022 and 2023, indicating that the inclusion of goodwill masks a higher degree of financial leverage. The trend suggests that the company’s leverage is more substantial when goodwill is excluded from the asset base.

Return on Equity (ROE)

Reported ROE transitioned from negative values in the earlier years to positive values in 2024 (3.88%), then returned to negative values in 2025 and 2026. The adjusted ROE consistently remains negative across the entire period, and is lower in magnitude than the reported ROE. This indicates that goodwill and intangible assets contribute positively to reported equity returns, but the underlying profitability, when excluding these items, remains negative. The adjusted ROE shows a more conservative view of equity performance.

Return on Assets (ROA)

Reported ROA followed a similar pattern to ROE, moving from negative values to positive in 2024 (1.34%) and then back to negative values in 2025 and 2026. The adjusted ROA is consistently negative and lower than the reported ROA throughout the period. This suggests that the inclusion of goodwill and intangible assets inflates the reported asset returns, and the core business operations, when excluding these items, generate negative returns on assets.

In summary, the adjustments for goodwill and intangible assets reveal a more conservative financial picture. While reported ratios suggest improving performance in certain periods, the adjusted ratios indicate a more consistent, and generally lower, level of profitability and efficiency. The impact on financial leverage is particularly pronounced, highlighting a potentially higher risk profile when goodwill is excluded.

An examination of the provided financial information reveals trends in total asset values and associated turnover ratios over a six-year period. Reported total assets demonstrate consistent growth throughout the period, increasing from approximately US$2.73 billion in 2021 to US$11.09 billion in 2026. Adjusted total assets, which exclude certain items, also exhibit a similar upward trajectory, rising from US$2.65 billion to US$9.72 billion over the same timeframe. The adjusted total asset turnover ratio shows a generally increasing trend, followed by a slight decline in the final year.

Reported Total Asset Turnover

The reported total asset turnover ratio increased from 0.32 in 2021 to 0.46 in 2023, indicating improving efficiency in generating revenue relative to reported assets. The ratio remained relatively stable at 0.46 in 2024 before decreasing slightly to 0.45 in 2025 and further to 0.43 in 2026. This recent decline suggests a potential decrease in the efficiency of asset utilization in the later years of the observed period.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio shows a more pronounced upward trend than its reported counterpart. It increased from 0.33 in 2021 to 0.51 in 2024, signifying enhanced revenue generation efficiency when considering the adjusted asset base. Similar to the reported ratio, the adjusted ratio experienced a slight decrease in the final two years, falling to 0.51 in 2025 and 0.49 in 2026. This suggests that the efficiency gains observed earlier in the period may have begun to moderate.

Comparison of Reported and Adjusted Ratios

Throughout the observed period, the adjusted total asset turnover ratio consistently exceeds the reported total asset turnover ratio. This difference indicates that the items excluded in the adjusted asset calculation contribute to a lower overall asset turnover when included in the reported figures. The magnitude of this difference remains relatively consistent across the years, suggesting a stable impact from these excluded items. The trend in both ratios is similar, but the adjusted ratio provides a potentially more refined view of operational efficiency by excluding the impact of these specific assets.

Overall, the company demonstrates increasing asset utilization efficiency as measured by both reported and adjusted total asset turnover ratios, particularly between 2021 and 2024. The slight declines observed in 2025 and 2026 warrant further investigation to determine the underlying causes and potential implications for future performance.

An examination of the financial information reveals trends in total assets, stockholders’ equity, and associated leverage ratios over a six-year period. Reported total assets demonstrate consistent growth, increasing from US$2,732,533 thousand in 2021 to US$11,086,684 thousand in 2026. Adjusted total assets also exhibit growth, though at a slightly lower magnitude, moving from US$2,648,967 thousand to US$9,723,390 thousand over the same timeframe. Stockholders’ equity, both reported and adjusted, shows a similar upward trajectory, with reported equity growing more rapidly than adjusted equity in later years.

Reported Financial Leverage

Reported financial leverage initially increased from 3.14 in 2021 to 3.53 in 2022, before declining steadily to 2.50 in 2026. This indicates a decreasing reliance on debt financing relative to reported equity over the period. The most significant decrease occurred between 2022 and 2024.

Adjusted Financial Leverage

Adjusted financial leverage presents a different pattern. It rose significantly from 3.37 in 2021 to 5.25 in 2022, then decreased to 3.17 in 2026. The initial increase suggests a greater reliance on debt when considering adjustments to total assets and equity. The subsequent decline indicates a reduction in this reliance, though the ratio remains higher than the reported financial leverage throughout the period. The magnitude of the decrease from 2022 to 2026 is substantial.

The divergence between reported and adjusted financial leverage suggests that the adjustments made to total assets and stockholders’ equity have a material impact on the calculated leverage ratios. The adjustments appear to initially amplify leverage, then contribute to a more pronounced decrease in leverage compared to the reported figures. The consistent growth in both reported and adjusted total assets, coupled with the growth in stockholders’ equity, suggests a strengthening financial position overall, although the impact of the adjustments warrants further investigation to understand the underlying components driving these differences.

Asset and Equity Adjustments

The difference between reported and adjusted total assets and equity widens over time. In 2021, the difference was relatively small, but by 2026, the adjustments reduced total assets by approximately US$1,363,294 thousand and stockholders’ equity by US$1,363,294 thousand. This increasing gap suggests the growing significance of the items being adjusted, potentially related to intangible assets or other non-cash components of the balance sheet.

The trend in adjusted financial leverage, while decreasing, consistently exceeds reported financial leverage. This implies that the adjustments to the balance sheet result in a higher perceived risk profile when evaluating the company’s financial structure. Continued monitoring of these adjustments and their underlying components is recommended to fully understand their implications.

Analysis reveals distinct trends in reported and adjusted stockholders’ equity and their corresponding returns on equity over the observed period. Stockholders’ equity, both reported and adjusted, generally increased throughout the period, though at differing rates. Reported return on equity exhibited significant volatility, transitioning from negative values to positive, then back to negative values, while adjusted return on equity consistently remained negative or near zero, with less fluctuation than its reported counterpart.

Reported Stockholders’ Equity

Reported total stockholders’ equity demonstrated a consistent upward trend, increasing from US$870,574 thousand in 2021 to US$4,428,390 thousand in 2026. The rate of increase accelerated over time, with the largest absolute increase occurring between 2023 and 2024.

Adjusted Stockholders’ Equity

Adjusted total stockholders’ equity also increased over the period, but at a slower pace than reported equity. It rose from US$787,008 thousand in 2021 to US$3,065,096 thousand in 2026. A notable decrease was observed between 2021 and 2022, followed by a period of more consistent growth.

Reported Return on Equity (ROE)

Reported ROE fluctuated considerably. It was negative in 2021, 2022, and 2023, reaching -22.89% in 2022. A positive value of 3.88% was recorded in 2024, but it subsequently declined to -3.67% in 2026. This suggests significant volatility in profitability relative to reported equity.

Adjusted Return on Equity (ROE)

Adjusted ROE remained consistently lower than reported ROE and exhibited a similar pattern of negativity. It was negative throughout the entire period, ranging from -38.54% in 2022 to 5.36% in 2024. The adjusted ROE values suggest that profitability, when considering adjustments to equity, has been consistently constrained. The decline from 5.36% in 2024 to -5.30% in 2026 indicates a weakening trend in profitability relative to adjusted equity.

The divergence between reported and adjusted ROE suggests that adjustments to stockholders’ equity have a substantial impact on the calculated return. The consistent negativity of the adjusted ROE, despite the growth in adjusted equity, warrants further investigation into the nature of these adjustments and their underlying implications for the company’s financial performance.

The analysis reveals trends in reported and adjusted return on assets over a six-year period. Total assets, both reported and adjusted, demonstrate consistent growth throughout the period. However, the return on these assets exhibits more volatility.

Total Asset Growth

Reported total assets increased from US$2.73 billion in 2021 to US$11.09 billion in 2026. Adjusted total assets followed a similar trajectory, growing from US$2.65 billion to US$9.72 billion over the same timeframe. The difference between reported and adjusted assets widens as the period progresses, indicating increasing adjustments are being made to the reported figures.

Reported Return on Assets (ROA)

Reported ROA began with negative values in 2021 and 2022, at -3.39% and -6.49% respectively. It improved to 1.34% in 2023, but subsequently declined to -0.22% in 2024 and -1.47% in 2026. This suggests periods of profitability followed by declines, potentially linked to asset growth outpacing income generation or increased costs.

Adjusted Return on Assets (ROA)

Adjusted ROA mirrors the trend of reported ROA, starting with negative values of -3.50% and -7.33% in 2021 and 2022. It also peaked at 1.49% in 2023 before decreasing to -0.25% in 2024 and -1.67% in 2026. The adjusted ROA values are consistently slightly lower than the reported ROA, indicating that the adjustments negatively impact profitability. The magnitude of the negative ROA in 2026 is greater for the adjusted figure.

ROA Trend Comparison

Both reported and adjusted ROA show a similar pattern of initial losses, a peak in profitability in 2023, and subsequent declines. The consistency in the trend between the two measures suggests that the adjustments are not fundamentally altering the overall profitability picture, but rather refining the reported results. The declining ROA in the later years, despite continued asset growth, warrants further investigation into the underlying drivers of profitability and asset utilization.

In summary, while asset growth is consistent, the return on those assets is volatile and ultimately declines towards the end of the analyzed period. The adjustments to total assets consistently result in a slightly lower ROA, suggesting a conservative approach to asset valuation.