CrowdStrike Holdings Inc. (NASDAQ:CRWD)

The analysis of the financial performance over the observed periods reveals several notable trends in key profitability and leverage metrics.

Return on Assets (ROA)

The ROA metric initially shows a negative performance, starting at -8.89% and generally improving over time. There is a trend of gradual recovery from the earliest periods through to early 2024, where the ROA moves from negative values towards slight positive territory, peaking at 2.36%. However, after this peak, the ROA declines again, returning to negative values by 2025. This pattern suggests an initial enhancement in asset efficiency followed by deterioration in the latter periods.

Financial Leverage

Financial leverage begins at a relatively low level of 2.02 and increases steadily, reaching a peak near 3.53 in early 2022. After this peak, leverage ratios exhibit a consistent downward trend through subsequent periods, stabilizing around 2.4 to 2.6 between 2024 and 2025. This pattern indicates an initial increase in reliance on debt or other liabilities relative to equity, followed by a conscious effort to reduce leverage and possibly de-risk the capital structure.

Return on Equity (ROE)

The ROE shows significant volatility and negative returns throughout most periods under review. It starts deeply negative at -17.95% and worsens further to nearly -23% around early 2022. Subsequently, the figure improves progressively, reaching a modest positive peak of 5.97% in late 2024. Similar to ROA, ROE also declines again thereafter, turning negative again by 2025. This volatility indicates periods of significant challenges in generating shareholder returns, with short intervals of improved profitability before a downturn.

Overall, the data reflects a company experiencing initial operational challenges with negative returns on assets and equity, combined with increasing leverage. The mid-period shows improvement in profitability and a strategic reduction in leverage, though this recovery is not sustained, as indicated by deteriorating returns in the final periods. These fluctuations suggest external pressures or internal issues affecting consistent profitability and asset utilization, despite attempts to lower financial leverage.

The financial data reveals distinct trends and fluctuations over the observed periods across key performance metrics. The analysis focuses on profitability, efficiency, leverage, and return on equity, reflecting the evolving financial health and operational dynamics.

Net Profit Margin (%)

The net profit margin demonstrates a general trajectory of improvement from significant negative margins toward occasional positive figures. Initially, the margin is deeply negative, around -24%, but steadily rises with intermittent fluctuations, reaching a peak of approximately 4.84% in early periods. However, this positive trend does not sustain, with margins declining again to slight negative values by the later periods. This pattern indicates initial operational inefficiencies or high costs that were partially alleviated, followed by challenges that reversed some gains.

Asset Turnover (ratio)

Asset turnover exhibits a relatively stable and slightly increasing trend, improving from around 0.37 to nearly 0.49. This gradual rise suggests improved utilization of assets to generate revenue, reflecting enhanced operational efficiency. Despite minor fluctuations, the consistency implies a steady capacity to leverage assets effectively over time.

Financial Leverage (ratio)

Financial leverage trends upward initially, moving from just above 2.0 to a peak of approximately 3.53, before gradually declining to around 2.48 toward the end of the observed timeframe. The early increase indicates a growing reliance on debt or other liabilities to finance assets, which might have been aimed at supporting expansion or operations. The subsequent decline points to deleveraging efforts or adjustments in capital structure to reduce financial risk.

Return on Equity (ROE) (%)

ROE closely mirrors the trend observed in net profit margin, beginning with substantial negative returns, around -18%, worsening to nearly -23%, followed by a recovery period where returns shift toward positive territory, peaking near 6%. This recovery phase indicates improved profitability and management effectiveness in generating shareholder value. Nevertheless, the latter part of the data shows a decline back into negative ROE, signaling renewed challenges that impair net returns to equity holders.

Overall, the data presents a narrative of early operational and profitability challenges, incremental improvements in asset utilization, fluctuating leverage strategies, and a cyclical pattern in equity returns. The emerging pattern suggests a company experiencing phases of financial stress, strategic adjustments, and efforts to enhance profitability and efficiency, with recent periods reflecting renewed headwinds or market pressures affecting profit margins and returns.

The analysis of the quarterly financial ratios reveals several noteworthy trends and patterns over the observed periods.

Tax Burden

The tax burden ratio shows limited data availability, with values becoming available only from early 2024. The ratio fluctuates significantly in this period, ranging from a negative 0.98 up to positive values around 0.8, suggesting variability in the company's effective tax rate or tax-related impacts on net income.

Interest Burden

Similar to tax burden, interest burden data appear only from early 2024. The ratio begins at a low 0.32 and increases steadily to approximately 0.89 before slightly declining. This indicates an improvement in the company's ability to cover interest expenses from operating earnings during this timeframe.

EBIT Margin

The EBIT margin exhibits a clear improving trend from a negative margin of -23.43% in April 2020 to positive territory by late 2023, reaching a peak of approximately 6.77% in October 2024. Following this peak, the margin declines again into negative figures by late 2025. This pattern suggests an initial period of significant operating losses, followed by a period of growing operational profitability, and ending with a deterioration in operating margins.

Asset Turnover

The asset turnover ratio displays gradual improvement from 0.37 in April 2020 to a range around 0.48-0.49 during 2023-2024, indicating increasingly efficient use of assets to generate revenue. Toward the later periods, it remains relatively stable around these levels, suggesting steady asset utilization performance.

Financial Leverage

Financial leverage shows an increasing trend from around 2.02 in early 2020 to a peak near 3.53 in early 2022. From that point onward, leverage declines gradually to below 2.5 by late 2025. This implies that the company initially increased its reliance on debt financing but later reduced leverage to more moderate levels.

Return on Equity (ROE)

ROE follows a trajectory similar to EBIT margin, starting with negative values near -18% in early 2020, worsening to about -23% in early 2022, then improving steadily through 2023 and 2024 to positive returns above 5%. However, this enhancement reverses starting in late 2024, with ROE declining back into negative territory below -7% by the end of 2025. The pattern reflects periods of losses followed by temporary profitability and a subsequent downturn in shareholder returns.

In summary, the company experienced initial operational challenges with negative profitability and returns on equity, accompanied by increasing financial leverage. Over time, there was a phase of operational and financial improvement evidenced by rising EBIT margins, better asset efficiency, reduced leverage, and positive ROE. However, the latter periods show a reversal of these gains, with deteriorating margins and returns, indicating renewed pressures on profitability and potentially on financial health.

Net Profit Margin

The net profit margin displayed a general trend of improvement from a negative margin of -23.97% in April 2020 to positive territory in early 2024, peaking at 4.84% in October 2024. This trajectory shows a steady reduction in losses over multiple quarters, particularly notable between January 2023 and October 2024. However, after reaching its peak, the margin experienced a decline back into negative values by mid-2025, ending at approximately -6.88% in October 2025. This pattern indicates a phase of recovery and profitability followed by a deterioration in profit margins toward the end of the observed period.

Asset Turnover

Asset turnover ratios exhibited some fluctuations but maintained an overall stable trend within the range of roughly 0.32 to 0.49 throughout the period. Initial values began around 0.37 to 0.40, showing minor drops and rebounds, with gradual increases observed around 2023, consistent with the periods of improving profitability. Following these improvements, the ratio remained close to 0.46–0.49 until it experienced slight dips in 2025. This suggests relatively consistent efficiency in using assets to generate sales, with small variations reflecting operational adjustments over time.

Return on Assets (ROA)

Return on assets mirrored the net profit margin’s trend, starting from a low of -8.89% in April 2020 and steadily improving to positive figures in the early part of 2024, reaching a high of 2.36% in October 2024. This improvement corresponds with the reduction of losses and increased profitability observed in the margin data. Following this peak, ROA deteriorated again, turning negative by early 2025 and ending near -3.15% by October 2025. The movements illustrate the company’s gradual enhancement in generating returns from its assets followed by a reversal in performance.

EBIT Margin

The EBIT Margin exhibited a general improving trend from April 2020 through January 2024, starting at -23.43% and improving steadily to a positive 5.88% in October 2023. This suggests a consistent reduction in operating losses, turning profitable during this period. However, from January 2024 onward, there is a noted decline in EBIT Margin, dropping back to negative values by October 2025, indicating renewed operating challenges.

Asset Turnover

The Asset Turnover ratio showed gradual improvement over the entire observed period, starting at 0.37 in April 2020 and increasing to around 0.46-0.49 range by 2024. This indicates more efficient use of assets to generate revenue with relative stability from mid-2023 onward.

Return on Assets (ROA)

ROA reflected a trajectory consistent with the EBIT Margin. Initially, ROA was deeply negative at -8.89% in April 2020, improving towards positive territory around January 2024 with a peak near 2.36%. Post this peak, ROA declined again, reverting to negative values by late 2024 and into 2025. This pattern indicates cyclical profitability challenges and recovery phases in asset returns.

Interest Burden

The Interest Burden ratio data is limited to the period from January 2024 onwards. This ratio started low at 0.32 in January 2024 and improved to values around 0.86-0.89 in 2024, implying reduced interest impact on operating income during this interval before declining slightly later.

Tax Burden

Tax Burden shows erratic behavior in the observed period starting in January 2024. It fluctuates significantly, ranging from a negative -0.98 to 0.8 and back to -0.37 by mid-2025. This indicates volatility in tax expenses relative to pre-tax income, suggesting irregular tax impacts or possible tax loss carryforwards.

Tax Burden

The tax burden ratio shows substantial variability in the available periods, fluctuating from a negative value of -0.98 to positive values peaking near 0.80. This oscillation indicates an unstable effective tax rate, with periods where negative tax burden suggests tax benefits or credits impacting reported earnings. The volatility in tax burden could influence net profitability in these periods.

Interest Burden

Interest burden displays an improving trend in the later periods, increasing from 0.32 to approximately 0.89 before slightly declining. This suggests that the company has been progressively reducing its interest expense relative to earnings before interest and taxes, thereby enhancing the portion of EBIT retained after interest costs. The improvement reflects a more favorable financing structure or lower interest expenses in recent quarters.

EBIT Margin

The EBIT margin shows consistent improvement across the periods analyzed. Starting from a significant negative margin around -23.43%, the margin steadily rises through the quarters, crossing into positive territory in early 2023, and reaching a peak near 6.77% before retreating slightly. This trend signals enhanced operational efficiency or revenue growth outpacing operating costs, although some recent quarters show a decline, suggesting emerging pressures on operating profitability.

Net Profit Margin

The net profit margin follows a similar trajectory to EBIT margin but with greater volatility and delayed positive recovery. Beginning at a low of approximately -24%, the margin improves gradually but remains negative through much of the earlier periods. Positive net margins are briefly achieved around early to mid-2024 but then reverse back into the negative range in the most recent periods. This pattern indicates that despite operational profitability improving, other factors such as taxes, interest expense, or non-operating items continue to weigh on net profitability, creating intermittent net losses.