CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Return on Assets (ROA)

The ROA exhibited a fluctuating trend over the analyzed period. Initially, it was significantly negative at -10.09% in 2020, improving substantially to -3.39% in 2021. However, it declined again to -6.49% in 2022 before improving to -3.65% in 2023. A positive return was recorded in 2024 at 1.34%, indicating enhanced asset profitability during that year. Despite this, the figure slightly declined to -0.22% in 2025, showing a marginal negative return by the end of the period.

Financial Leverage

Financial leverage increased markedly early in the period, rising from 1.89 in 2020 to a peak of 3.53 in 2022, indicating a growing use of debt relative to equity. After this peak, leverage began to decline, reaching 3.43 in 2023 and decreasing further to 2.88 in 2024 and 2.65 in 2025, suggesting a reduction in reliance on debt financing towards the end of the period.

Return on Equity (ROE)

ROE mirrored the fluctuations observed in ROA, starting with a substantially negative value of -19.1% in 2020. It showed improvement to -10.64% in 2021 but then dropped sharply to -22.89% in 2022, indicating considerable volatility in equity profitability. The ratio recovered to -12.52% in 2023 and notably turned positive at 3.88% in 2024. However, a decline followed in 2025, with ROE slipping back to -0.59%, suggesting challenges in maintaining positive equity returns consistently.

Net Profit Margin

The net profit margin exhibited significant volatility over the periods under review. It started at a negative 29.45% in early 2020, improved considerably to negative 10.59% in 2021, but then deteriorated again to negative 16.18% in 2022. A recovery trend was observed in 2023, with the margin improving to -8.18%, eventually turning positive to 2.92% by 2024. However, this positive trend was not sustained, as it declined slightly to -0.49% in 2025, indicating ongoing challenges in maintaining profitability.

Asset Turnover

The asset turnover ratio demonstrated a gradual upward trajectory over the years. Starting at 0.34 in 2020, it decreased slightly to 0.32 in 2021 but then increased steadily through subsequent years, reaching a peak of 0.46 in 2024. It remained relatively stable at 0.45 in 2025. This trend suggests improving efficiency in the use of assets to generate revenue over the long term.

Financial Leverage

Financial leverage increased markedly from 1.89 in 2020 to a peak of 3.53 in 2022, indicating a rising degree of debt or borrowed funds relative to equity during this period. Following this peak, leverage declined progressively to 3.43 in 2023, then more sharply to 2.88 in 2024, and further to 2.65 by 2025. This reduction implies a strategic move towards lowering financial risk and reliance on external financing.

Return on Equity (ROE)

Return on equity followed a pattern similar to net profit margin, with significant fluctuations. It began at a negative 19.1% in 2020, improved to -10.64% in 2021, but then declined sharply to -22.89% in 2022. A recovery phase ensued with ROE improving to -12.52% in 2023 and turning positive at 3.88% in 2024. However, this improvement was short-lived, as ROE fell again to -0.59% in 2025. These oscillations reflect unstable profitability relative to shareholders' equity.

The financial data reveals several important trends over the observed years, highlighting fluctuations in profitability, efficiency, leverage, and overall return to equity holders.

Tax Burden

The tax burden ratio is available only for the last two periods, showing a positive value of 0.73 in the year ending January 31, 2024, followed by a negative value of -0.37 in the subsequent year, indicating a significant change and potential tax adjustments or losses impacting net income differently in the latest period.

Interest Burden

Interest burden also appears for the last two years, with a decrease from 0.83 in 2024 to 0.66 in 2025, suggesting a higher interest expense relative to earnings before interest and taxes (EBIT) in the most recent period, which may exert downward pressure on profitability.

EBIT Margin (%)

Operating profitability has generally improved over time. Starting from a deeply negative margin of -28.94% in 2020, it steadily increases, moves closer to break-even in 2023 at -6.05%, turns positive reaching 4.82% in 2024, and then slightly decreases to 1.98% in 2025. This trend indicates an operating turnaround but with some volatility in the most recent year.

Asset Turnover

Asset turnover has shown a gradual improvement from 0.34 in 2020 to a peak of 0.46 in 2024, then slightly declines to 0.45 in 2025. This suggests better utilization of assets to generate revenue over the years, contributing positively to operational efficiency.

Financial Leverage

Leverage increased significantly between 2020 and 2022 from 1.89 to 3.53, indicative of increased debt or other liabilities relative to equity. It then declines progressively to 2.65 by 2025, demonstrating efforts to reduce financial risk and reliance on borrowed funds after peaking.

Return on Equity (ROE) (%)

The ROE profile is volatile and negative for most of the years, starting at -19.1% in 2020, minimally improving to -10.64% in 2021, then sharply falling again to -22.89% in 2022. It recovers to -12.52% in 2023, becomes positive at 3.88% in 2024, but drops to slightly negative -0.59% in 2025. These fluctuations reflect inconsistent profitability and challenges in generating positive returns for shareholders throughout the period, despite some recent improvement.

In summary, the company exhibits a trend of improving operational efficiency and margins up to 2024, reversed somewhat in the most recent year. Leverage peaked mid-period before a reduction phase, and returns on equity remain unstable and near break-even recently. The tax and interest burdens in the latest years appear to have a material impact on net profitability, further contributing to financial performance variability.

Net Profit Margin

The net profit margin shows considerable fluctuations over the periods presented. It started with a significantly negative margin of -29.45% in the earliest year, improving substantially to -10.59% the following year. However, this improvement was not sustained, as the margin declined again to -16.18% in the subsequent year before improving steadily to a positive margin of 2.92% by January 31, 2024. The latest figure indicates a slight downturn to -0.49%, suggesting challenges in maintaining profitability despite earlier gains.

Asset Turnover

The asset turnover ratio exhibits a general upward trend, indicating enhanced efficiency in generating revenue from assets. It began at 0.34 and slightly decreased to 0.32 in the following year. Subsequently, it improved consistently to 0.40, 0.45, and peaked at 0.46 before experiencing a minor decline to 0.45. This progression implies a gradual optimization of asset utilization over time.

Return on Assets (ROA)

Return on assets reflects a pattern consistent with the fluctuations in net profit margin. Initially, ROA was deeply negative at -10.09%, followed by an improvement to -3.39%. It then deteriorated again to -6.49% before improving to -3.65%. Notably, it transitioned into positive territory at 1.34% in the fifth period, only to fall just below zero to -0.22% in the latest year. This oscillation highlights ongoing difficulties in translating asset base into profitable returns steadily.

The financial data reveals several noteworthy trends and fluctuations over the observed periods. The company's operational efficiency and profitability indicators show a mixed performance with some periods of improvement followed by signs of decline.

Tax Burden

The tax burden ratio is only available for the most recent two years. In the year ending January 31, 2024, the ratio stands at 0.73, indicating that a significant portion of pre-tax income was retained after tax. However, this ratio sharply deteriorates to -0.37 in the subsequent year, suggesting an unusual tax benefit or expense recovery impacting net income negatively after taxes.

Interest Burden

Interest burden data is similarly limited to the last two reported years. It shows a decline from 0.83 to 0.66, implying an increased interest expense relative to EBIT or reduced earnings before interest and taxes, which reduces financial leverage performance.

EBIT Margin

The EBIT margin exhibits a consistent improvement from a deeply negative -28.94% in 2020 to a positive margin of 4.82% by 2024. This positive margin suggests that the company achieved operational profitability for the first time within this period. However, the margin then decreases to 1.98% in 2025, indicating some weakening in operational efficiency or profitability despite remaining positive.

Asset Turnover

This ratio has generally trended upwards from 0.34 in 2020 to peak at 0.46 by 2024, signaling better utilization of assets in generating revenue. A slight decrease to 0.45 in 2025 still represents improvement compared to earlier years, denoting steady asset use efficiency.

Return on Assets (ROA)

ROA follows a trajectory similar to EBIT margin, starting with negative returns of -10.09% in 2020, improving steadily but irregularly to a positive 1.34% in 2024. However, it slightly reverses to -0.22% in 2025, reflecting a recent downturn in overall asset profitability despite earlier progress.

Overall, the company shows clear signs of operational improvement from 2020 through 2024, with profitability and asset utilization increasing. The emergence of positive EBIT margin and ROA indicates a transition to operational profitability. However, data from 2025 reveals early signs of potential challenges, including a decline in interest burden, tax burden volatility, and a marginal drop in profitability metrics. This suggests the company may be encountering costs or external factors impacting its financial performance in the most recent year.

Tax Burden

The tax burden ratio shows data only for the last two reported years, with a notable decline from 0.73 in 2024 to -0.37 in 2025. This indicates a considerable negative shift in the company's effectiveness in managing tax expenses relative to earnings, suggesting potential tax anomalies or adjustments impacting net profitability.

Interest Burden

Available for 2024 and 2025, the interest burden ratio decreased from 0.83 to 0.66, demonstrating a reduction in earnings available after interest expenses. This downward trend reflects increased interest costs or declining operational earnings before interest, potentially signaling a pressure on profitability from financing activities.

EBIT Margin

The EBIT margin shows a consistent improvement over the observed six-year span, starting at a negative -28.94% in 2020 and improving significantly to a positive 4.82% by 2024, before a slight decline to 1.98% in 2025. This trajectory indicates a recovery in operating profitability, moving from substantial losses toward modest gains before the slight erosion in the final year.

Net Profit Margin

Net profit margin demonstrates volatile performance with fluctuating losses narrowing and occasional brief returns to profitability. Beginning at -29.45% in 2020, the margin improves to -8.18% by 2023, turns positive to 2.92% in 2024, but then declines back into negative territory at -0.49% in 2025. This pattern suggests ongoing challenges in sustaining net profitability despite improvements in operational margins.