Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
Economic Profit
CrowdStrike Holdings Inc., economic profit calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2026 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 720,234 – 20.16% × 9,783,940 = -1,251,974
The financial trajectory from 2021 to 2026 indicates a growing divergence between operational profitability and the cost of the capital employed. While operational earnings have generally trended upward, the aggressive expansion of the invested capital base has resulted in a widening economic deficit, signifying that the returns generated are insufficient to cover the company's cost of capital.
- Net Operating Profit After Taxes (NOPAT)
- An overall upward trend is observed in NOPAT, which grew from 245,962 thousand USD in 2021 to 720,234 thousand USD by 2026. This growth was interrupted by a significant contraction in 2025, where the figure declined to 516,439 thousand USD before rebounding in the final period.
- Invested Capital and Cost of Capital
- Invested capital has experienced consistent and rapid growth, increasing from 2,524,874 thousand USD in 2021 to 9,783,940 thousand USD in 2026. Parallel to this expansion, the cost of capital has remained highly stable, maintaining a narrow range between 19.87% and 20.16% throughout the entire period.
- Economic Profit Trends
- Economic profit has remained consistently negative, indicating a failure to achieve a positive Economic Value Added (EVA). Although there was a marginal improvement in 2023, the deficit accelerated sharply thereafter. The economic profit shifted from -257,955 thousand USD in 2021 to -1,251,974 thousand USD by 2026. This deterioration suggests that the scale of capital investment is increasing at a rate that far exceeds the growth in operational profitability, leading to an increase in the destruction of economic value over time.
AI Ask an analyst for more
Net Operating Profit after Taxes (NOPAT)
CrowdStrike Holdings Inc., NOPAT calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowance for credit losses.
3 Addition of increase (decrease) in deferred revenue.
4 Addition of increase (decrease) in equity equivalents to net income (loss) attributable to CrowdStrike.
5 2026 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 74,606 × 5.30% = 3,954
6 2026 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 31,975 × 21.00% = 6,715
7 Addition of after taxes interest expense to net income (loss) attributable to CrowdStrike.
8 2026 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 194,969 × 21.00% = 40,943
9 Elimination of after taxes investment income.
Net operating profit after taxes (NOPAT) demonstrates a clear upward trajectory over the observed period, although with some fluctuation. While net income attributable to CrowdStrike exhibits volatility, NOPAT consistently shows positive values and growth, suggesting operational profitability despite variations in reported net income.
- Overall Trend
- NOPAT increased significantly from US$245,962 thousand in 2021 to US$690,745 thousand in 2024. A slight decrease is then observed in 2025, falling to US$516,439 thousand, before recovering to US$720,234 thousand in 2026. This indicates a generally positive trend in core operational profitability, with a temporary dip in 2025.
- Growth Rates
- The largest year-over-year increase in NOPAT occurred between 2022 and 2023, with a growth of approximately 60.7%. The increase from 2023 to 2024 was approximately 10.4%. The decline in 2025 represents a decrease of approximately 25.2%, followed by a recovery of approximately 39.8% in 2026.
- Relationship to Net Income
- A notable divergence exists between NOPAT and net income. While NOPAT consistently remains positive, net income fluctuates between losses and a profit. This suggests that non-operating factors, such as financing costs or one-time events, significantly impact reported net income, while the core business operations, as reflected in NOPAT, remain fundamentally profitable. The negative net income figures in 2021, 2022, 2023, and 2025 are offset by the consistently positive NOPAT values.
- Long-Term Outlook (Based on Available Information)
- The recovery in NOPAT in 2026 suggests a resilience in the underlying business model. The continued growth in NOPAT, despite fluctuations in net income, indicates a strong capacity to generate profit from core operations. Further investigation into the factors driving the 2025 dip and the subsequent recovery would be beneficial.
AI Ask an analyst for more
Cash Operating Taxes
CrowdStrike Holdings Inc., cash operating taxes calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
The provision for income taxes and cash operating taxes exhibit fluctuating patterns over the observed period. Significant volatility is present in both metrics, suggesting potential influences from changes in accounting practices, tax regulations, or the company’s financial performance.
- Provision for Income Taxes
- The provision for income taxes increased substantially from US$4.76 million in 2021 to US$72.36 million in 2022. This was followed by a considerable decrease to US$22.40 million in 2023. A subsequent rise to US$32.23 million occurred in 2024, before increasing again to US$71.13 million in 2025. The most recent year, 2026, shows a decrease to US$34.18 million. This pattern indicates a lack of consistent growth and suggests sensitivity to underlying financial factors.
- Cash Operating Taxes
- Cash operating taxes mirrored the volatility seen in the provision for income taxes. An increase from US$6.00 million in 2021 to US$91.21 million in 2022 was observed, followed by a decline to US$15.79 million in 2023. Further reduction occurred in 2024, reaching US$10.36 million. A notable increase to US$45.88 million occurred in 2025, followed by a decrease to US$14.74 million in 2026. The fluctuations in cash operating taxes may not directly correlate with the provision for income taxes due to timing differences in tax payments and receipts.
- Relationship between Provision and Cash Taxes
- In 2021, cash operating taxes exceeded the provision for income taxes. However, from 2022 through 2025, the provision for income taxes generally exceeded cash operating taxes. In 2026, the provision for income taxes was higher than cash operating taxes. These differences could be attributed to deferred tax assets or liabilities, tax credits, or changes in tax laws impacting the timing of tax payments.
The substantial variations in both the provision for income taxes and cash operating taxes warrant further investigation to understand the underlying drivers. A detailed analysis of the company’s tax strategy, accounting policies, and financial performance is recommended to provide a comprehensive explanation for these trends.
AI Ask an analyst for more
Invested Capital
CrowdStrike Holdings Inc., invested capital calculation (financing approach)
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of deferred revenue.
5 Addition of equity equivalents to total CrowdStrike Holdings, Inc. stockholders’ equity.
6 Removal of accumulated other comprehensive income.
7 Subtraction of construction in progress.
8 Subtraction of short-term investments.
The reported invested capital demonstrates a consistent upward trajectory over the observed period. Simultaneously, both total reported debt & leases and total stockholders’ equity have increased, contributing to the growth in invested capital.
- Invested Capital Trend
- Invested capital increased from US$2,524,874 thousand in January 2021 to US$9,783,940 thousand in January 2026. This represents a substantial cumulative increase, indicating growing resource allocation within the organization. The rate of increase appears to accelerate over time, with larger absolute increases observed in later years.
- Debt & Leases
- Total reported debt & leases exhibited a generally increasing trend, moving from US$778,992 thousand in January 2021 to US$820,077 thousand in January 2026. While generally upward, there is a slight decrease observed between January 2021 and January 2022, followed by a period of growth. The growth rate of debt appears to be slower than the growth rate of equity and invested capital overall.
- Stockholders’ Equity
- Total stockholders’ equity experienced significant growth, rising from US$870,574 thousand in January 2021 to US$4,428,390 thousand in January 2026. This represents a more than five-fold increase over the period. The rate of growth in stockholders’ equity is notably higher than that of debt, suggesting an increasing reliance on equity financing.
The consistent growth in invested capital, coupled with the proportionally larger increase in stockholders’ equity relative to debt, suggests a strengthening financial position. The organization appears to be effectively utilizing both debt and equity to fund its operations and expansion, with a growing emphasis on equity financing in recent years.
AI Ask an analyst for more
Cost of Capital
CrowdStrike Holdings Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 108,080,181) | 108,080,181) | ÷ | 108,872,987) | = | 0.99 | 0.99 | × | 20.29% | = | 20.14% | ||
| Senior Notes3 | 718,200) | 718,200) | ÷ | 108,872,987) | = | 0.01 | 0.01 | × | 3.00% × (1 – 21.00%) | = | 0.02% | ||
| Operating lease liability4 | 74,606) | 74,606) | ÷ | 108,872,987) | = | 0.00 | 0.00 | × | 5.30% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 108,872,987) | 1.00 | 20.16% | ||||||||||
Based on: 10-K (reporting date: 2026-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 76,563,140) | 76,563,140) | ÷ | 77,296,458) | = | 0.99 | 0.99 | × | 20.29% | = | 20.09% | ||
| Senior Notes3 | 688,400) | 688,400) | ÷ | 77,296,458) | = | 0.01 | 0.01 | × | 3.00% × (1 – 21.00%) | = | 0.02% | ||
| Operating lease liability4 | 44,918) | 44,918) | ÷ | 77,296,458) | = | 0.00 | 0.00 | × | 5.50% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 77,296,458) | 1.00 | 20.12% | ||||||||||
Based on: 10-K (reporting date: 2025-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 79,739,259) | 79,739,259) | ÷ | 80,460,839) | = | 0.99 | 0.99 | × | 20.29% | = | 20.10% | ||
| Senior Notes3 | 671,200) | 671,200) | ÷ | 80,460,839) | = | 0.01 | 0.01 | × | 3.00% × (1 – 21.00%) | = | 0.02% | ||
| Operating lease liability4 | 50,380) | 50,380) | ÷ | 80,460,839) | = | 0.00 | 0.00 | × | 5.70% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 80,460,839) | 1.00 | 20.13% | ||||||||||
Based on: 10-K (reporting date: 2024-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 28,699,930) | 28,699,930) | ÷ | 29,387,943) | = | 0.98 | 0.98 | × | 20.29% | = | 19.81% | ||
| Senior Notes3 | 645,400) | 645,400) | ÷ | 29,387,943) | = | 0.02 | 0.02 | × | 3.00% × (1 – 21.00%) | = | 0.05% | ||
| Operating lease liability4 | 42,613) | 42,613) | ÷ | 29,387,943) | = | 0.00 | 0.00 | × | 4.50% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 29,387,943) | 1.00 | 19.87% | ||||||||||
Based on: 10-K (reporting date: 2023-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 43,772,048) | 43,772,048) | ÷ | 44,515,947) | = | 0.98 | 0.98 | × | 20.29% | = | 19.95% | ||
| Senior Notes3 | 708,700) | 708,700) | ÷ | 44,515,947) | = | 0.02 | 0.02 | × | 3.00% × (1 – 21.00%) | = | 0.04% | ||
| Operating lease liability4 | 35,199) | 35,199) | ÷ | 44,515,947) | = | 0.00 | 0.00 | × | 5.40% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 44,515,947) | 1.00 | 19.99% | ||||||||||
Based on: 10-K (reporting date: 2022-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 42,581,259) | 42,581,259) | ÷ | 43,382,422) | = | 0.98 | 0.98 | × | 20.29% | = | 19.91% | ||
| Senior Notes3 | 760,200) | 760,200) | ÷ | 43,382,422) | = | 0.02 | 0.02 | × | 3.00% × (1 – 21.00%) | = | 0.04% | ||
| Operating lease liability4 | 40,963) | 40,963) | ÷ | 43,382,422) | = | 0.00 | 0.00 | × | 5.90% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 43,382,422) | 1.00 | 19.96% | ||||||||||
Based on: 10-K (reporting date: 2021-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
CrowdStrike Holdings Inc., economic spread ratio calculation, comparison to benchmarks
| Jan 31, 2026 | Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | (1,251,974) | (1,015,389) | (494,819) | (192,016) | (257,860) | (257,955) | |
| Invested capital2 | 9,783,940) | 7,614,215) | 5,890,276) | 4,116,318) | 3,240,763) | 2,524,874) | |
| Performance Ratio | |||||||
| Economic spread ratio3 | -12.80% | -13.34% | -8.40% | -4.66% | -7.96% | -10.22% | |
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Accenture PLC | — | 0.60% | 0.24% | 1.02% | 3.89% | 5.71% | |
| Adobe Inc. | — | 13.08% | 0.80% | 0.97% | 6.46% | 8.84% | |
| AppLovin Corp. | — | 28.27% | 0.55% | -20.58% | -26.78% | -30.15% | |
| Cadence Design Systems Inc. | — | -1.28% | -2.88% | 7.17% | 6.58% | 6.80% | |
| Datadog Inc. | — | -8.87% | -9.56% | -6.08% | -11.83% | -4.01% | |
| International Business Machines Corp. | — | -0.73% | -7.57% | -3.53% | -11.28% | -6.14% | |
| Intuit Inc. | 7.82% | -2.92% | -6.59% | -8.64% | -7.53% | 0.10% | |
| Microsoft Corp. | 8.84% | 5.58% | 7.47% | 10.51% | 18.50% | 27.54% | |
| Oracle Corp. | -3.93% | -8.07% | -7.92% | -8.73% | -7.70% | 0.51% | |
| Palantir Technologies Inc. | — | 41.58% | -12.34% | -9.06% | -32.80% | -40.26% | |
| Palo Alto Networks Inc. | -12.82% | -3.85% | 5.34% | 11.47% | 3.50% | -5.19% | |
| Salesforce Inc. | -7.08% | -12.51% | -14.32% | -17.76% | -14.64% | -12.49% | |
| ServiceNow Inc. | — | 2.67% | 5.94% | 5.24% | 0.73% | 1.95% | |
| Synopsys Inc. | — | -12.43% | -8.18% | -7.48% | -0.88% | -6.91% | |
| Workday Inc. | -9.57% | -11.67% | -13.07% | -19.29% | -14.12% | -19.37% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 Economic profit. See details »
2 Invested capital. See details »
3 2026 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -1,251,974 ÷ 9,783,940 = -12.80%
4 Click competitor name to see calculations.
The financial trajectory from 2021 to 2026 indicates a persistent failure to achieve positive economic value added, characterized by negative economic profit throughout the entire period. While there was a period of marginal improvement between 2021 and 2023, the subsequent years show a significant acceleration in economic losses alongside a substantial increase in the capital base.
- Invested Capital Trends
- A consistent and aggressive upward trajectory is observed in invested capital, which grew from US$ 2.52 billion in 2021 to a projected US$ 9.78 billion by 2026. This indicates a continuous expansion of the resource base deployed into the business operations.
- Economic Profit Performance
- Economic profit remained negative across all observed periods, signaling that the returns generated are insufficient to cover the cost of capital. After a period of narrowing losses that peaked in 2023 at negative US$ 192 million, a sharp deterioration occurred. Losses expanded to US$ 494.8 million in 2024 and are projected to deepen further to US$ 1.25 billion by 2026.
- Economic Spread Ratio Analysis
- The economic spread ratio exhibits significant volatility and a general downward trend after 2023. The ratio initially improved from -10.22% in 2021 to -4.66% in 2023, suggesting a narrowing gap between the return on invested capital and the cost of capital. However, this progress was reversed, with the ratio falling to -13.34% in 2025. Although a slight recovery to -12.80% is projected for 2026, the ratio remains deeply negative, confirming that the company is destroying economic value as the scale of invested capital increases.
AI Ask an analyst for more
Economic Profit Margin
CrowdStrike Holdings Inc., economic profit margin calculation, comparison to benchmarks
| Jan 31, 2026 | Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | (1,251,974) | (1,015,389) | (494,819) | (192,016) | (257,860) | (257,955) | |
| Revenue | 4,812,005) | 3,953,624) | 3,055,555) | 2,241,236) | 1,451,594) | 874,438) | |
| Add: Increase (decrease) in deferred revenue | 1,024,761) | 674,578) | 698,986) | 825,792) | 617,426) | 340,727) | |
| Adjusted revenue | 5,836,766) | 4,628,202) | 3,754,541) | 3,067,028) | 2,069,020) | 1,215,165) | |
| Performance Ratio | |||||||
| Economic profit margin2 | -21.45% | -21.94% | -13.18% | -6.26% | -12.46% | -21.23% | |
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Accenture PLC | — | 0.39% | 0.13% | 0.52% | 1.87% | 2.93% | |
| Adobe Inc. | — | 11.83% | 0.90% | 1.21% | 7.53% | 11.02% | |
| AppLovin Corp. | — | 29.05% | 0.54% | -28.17% | -50.15% | -60.37% | |
| Cadence Design Systems Inc. | — | -1.93% | -4.41% | 7.14% | 6.57% | 6.90% | |
| Datadog Inc. | — | -5.26% | -8.68% | -3.80% | -8.19% | -3.19% | |
| International Business Machines Corp. | — | -1.30% | -13.38% | -6.28% | -19.53% | -11.67% | |
| Intuit Inc. | 9.55% | -3.77% | -10.13% | -14.15% | -14.50% | 0.13% | |
| Microsoft Corp. | 14.84% | 8.33% | 10.44% | 11.97% | 17.73% | 22.86% | |
| Oracle Corp. | -9.63% | -16.18% | -15.08% | -16.89% | -14.14% | 1.01% | |
| Palantir Technologies Inc. | — | 21.54% | -10.70% | -4.86% | -55.03% | -66.31% | |
| Palo Alto Networks Inc. | -35.63% | -4.56% | 5.67% | 11.39% | 4.08% | -6.99% | |
| Salesforce Inc. | -15.16% | -27.01% | -33.09% | -44.91% | -40.63% | -28.65% | |
| ServiceNow Inc. | — | 2.94% | 4.89% | 4.22% | 0.59% | 1.69% | |
| Synopsys Inc. | — | -72.52% | -13.71% | -10.55% | -1.24% | -10.99% | |
| Workday Inc. | -11.50% | -12.39% | -14.55% | -23.67% | -19.14% | -25.28% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 Economic profit. See details »
2 2026 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenue
= 100 × -1,251,974 ÷ 5,836,766 = -21.45%
3 Click competitor name to see calculations.
An analysis of the financial performance from January 31, 2021, to January 31, 2026, reveals a significant divergence between revenue growth and economic value creation. While the organization has achieved consistent and substantial scaling in adjusted revenue, this growth has not translated into positive economic profit. Instead, the economic profit has deteriorated significantly in the latter half of the period.
- Adjusted Revenue Growth
- A consistent upward trajectory is observed in adjusted revenue, which grew from 1,215,165 thousand USD in 2021 to 5,836,766 thousand USD by 2026. This represents a steady expansion of the top line over the six-year period, indicating strong market penetration and scaling capabilities.
- Economic Profit Trajectory
- Economic profit remained relatively stable between 2021 and 2022 and showed a slight improvement by January 31, 2023, reaching its least negative value of -192,016 thousand USD. However, a sharp reversal occurred thereafter. From 2024 onwards, losses accelerated rapidly, with economic profit falling to -494,819 thousand USD in 2024 and further declining to -1,251,974 thousand USD by 2026.
- Economic Profit Margin Trends
- The economic profit margin exhibited a period of optimization followed by a marked decline. The margin improved from -21.23% in 2021 to a peak of -6.26% in 2023, suggesting an increase in capital efficiency during that interval. This trend reversed sharply in 2024, with the margin dropping to -13.18%, and further deteriorating to -21.94% in 2025 and -21.45% in 2026. The stabilization of the margin near -21% in the final two years indicates that the cost of capital and operating expenses are scaling in tandem with, or exceeding, the growth in revenue.
In summary, the period is characterized by an initial phase of improving economic efficiency that peaked in 2023, followed by a phase of expanding economic losses. The increase in the magnitude of negative economic profit despite record revenues suggests that the incremental investments required to drive growth are not currently generating returns above the company's cost of capital.
AI Ask an analyst for more