CrowdStrike Holdings Inc. (NASDAQ:CRWD)

The Return on Assets (ROA) exhibited significant fluctuations between 2020 and 2025. Initially, the ROA was negative, indicating that the company’s assets were not generating sufficient profit. However, a clear upward trend emerged, culminating in a positive ROA in 2024, before declining again in 2025.

Overall Trend

From 2020 to 2025, the ROA transitioned from a substantial negative value to a positive value, then decreased again. This suggests an initial period of underperformance followed by improved profitability, and a subsequent reversal of that improvement.

Negative ROA (2020-2023)

Between 2020 and 2023, the ROA remained negative, ranging from -10.09% to -3.65%. The most significant negative ROA occurred in 2020 at -10.09%, followed by 2022 at -6.49%. This period indicates that the company’s net income was insufficient to generate returns from its asset base. While the negative ROA lessened over these years, it consistently reflected a lack of profitability relative to assets.

Positive ROA (2024)

In 2024, the ROA turned positive, reaching 1.34%. This represents a substantial improvement and indicates that the company began to generate a return on its assets. This positive shift coincided with a significant increase in net income attributable to the company.

ROA Decline (2025)

The ROA decreased to -0.22% in 2025. This decline, despite continued asset growth, suggests a decrease in profitability. The negative value, though small, indicates a return to underperformance relative to the asset base, potentially due to a net loss in that year.

Relationship to Net Income

The ROA figures closely mirror the trend in net income. Negative ROA values correspond with net losses, while the positive ROA in 2024 aligns with reported net income. The decline in ROA in 2025 is consistent with the reported net loss for that year.

Relationship to Total Assets

Total assets increased consistently throughout the period. However, the ROA did not consistently increase alongside asset growth, indicating that asset expansion alone did not guarantee improved profitability. The positive ROA in 2024 demonstrates that efficient asset utilization, coupled with positive net income, is crucial for generating returns.