CrowdStrike Holdings Inc. (NASDAQ:CRWD)

The analysis of the financial trends reveals the following key observations for the periods presented:

Return on Assets (ROA)

The ROA showed a markedly negative trend during the majority of the periods observed, starting with a low point around -10.09% in early 2020. There is a gradual improvement over time, with the ratio moving closer to zero and eventually reaching slightly positive values in early 2024, peaking around 2.36%. However, the trend reverses again toward the most recent periods, declining back to negative territory near -1.98%. This pattern suggests fluctuating asset efficiency with a temporary recovery phase followed by renewed challenges in generating returns from assets.

Financial Leverage

The financial leverage ratio initially started very high at 6.29 but quickly declined to levels between approximately 1.6 and 2.2 within the early periods. Subsequently, leverage steadily increased from around early 2020, peaking near 3.5, and then gradually decreasing again towards about 2.5 in the latest periods. This movement indicates varying reliance on debt versus equity financing, with moderate leverage maintained in more recent periods, reflecting potential efforts to optimize capital structure.

Return on Equity (ROE)

The ROE mirrors the ROA trend in being predominantly negative for most periods, starting with significantly negative values close to -19.1% in early 2020 and worsening further to below -22% in 2021. In subsequent periods, it shows steady improvement, rising to positive territory in early 2024 with a peak around 5.97%. This improvement is followed by a decline back to negative levels in the most recent periods, ending near -4.99%. The fluctuations in ROE indicate volatile profitability relative to shareholder equity, with periods of potential operational or financial recovery interrupted by renewed downward pressure.

Overall, the data illustrates a company experiencing considerable difficulty in generating positive returns on assets and equity during the initial and mid-portions of the timeline, with temporary recoveries around early 2024. Financial leverage levels suggest active management of the balance between debt and equity, though the company maintains a moderate level of leverage in recent periods. The trends in ROA and ROE indicate ongoing challenges in achieving sustained profitability and efficiency in asset utilization.

Net Profit Margin

The net profit margin shows a general improvement trend over the evaluated quarters. Starting with negative values around -29.45% in early 2020, the margin gradually improves, becoming less negative through 2021 and 2022. This trend continues into 2023, with the margin turning positive at 2.92% in April 2023 and peaking around 4.84% in October 2023. However, subsequent quarters display a reversal, with the margin declining back into negative territory, reaching approximately -4.17% by April 2025. This pattern indicates fluctuating profitability with a peak positive performance in late 2023 followed by a downturn.

Asset Turnover

Asset turnover exhibits a generally increasing pattern through the period. Initial data from early 2020 show ratios ranging from 0.34 to 0.44, with intermittent decreases in some quarters. From 2021 onward, the ratio steadily climbs from 0.32 to peaks near 0.49 during late 2023 and into 2024, suggesting improved efficiency in using assets to generate revenue. Towards the latest periods, the metric slightly tapers but remains elevated above earlier levels, reflecting sustained asset utilization effectiveness.

Financial Leverage

Financial leverage demonstrates variability across quarters. Notably high at 6.29 in April 2019, the ratio stabilizes at lower levels around 1.6 to 2.1 through 2019 and early 2020. From mid-2020, leverage rises sharply to values exceeding 3.0, maintaining a plateau roughly between 3.2 and 3.5 during 2021 and 2022. Following that, a gradual decline is seen, with ratios decreasing to around 2.5 by early 2025. This suggests a reduction in the reliance on debt or borrowed funds relative to equity towards the end of the period.

Return on Equity (ROE)

Return on equity follows a trend similar to net profit margin, with initial deeply negative values approaching -19.1% in early 2020. The ROE continues to deteriorate, reaching lows near -22.89% in early 2022 before showing signs of recovery. The recovery progresses steadily through 2023, turning positive at 3.88% in April 2023 and peaking near 5.97% in October 2023. This improvement corresponds with the period of positive net profit margin. Following the peak, ROE declines again, with a downturn into negative values nearing -4.99% by April 2025, indicating a recent weakening in value creation for shareholders.

Tax Burden

The tax burden ratio is mostly unreported for the initial periods, with data available only from October 2023 onward. It shows considerable volatility, ranging from a significant negative value of -0.98 in October 2023 to positive values around 0.73 to 0.8 in the subsequent quarters. This variability indicates inconsistent tax expense impact relative to pre-tax income during the latest periods.

Interest Burden

Interest burden data is available starting January 2024, showing a progressive improvement from 0.32 to 0.66 by July 2024. The upward trend suggests decreasing interest expenses relative to earnings before interest and taxes, implying better management of interest costs or reduced leverage effects during recent quarters.

EBIT Margin

The EBIT margin exhibits a clear upward trend over the observed period. Starting from deeply negative values around -29% in early 2020, the margin improves steadily each quarter, crossing into positive territory approximately around mid-2023, peaking close to 6.77% in October 2023. However, it slightly declines thereafter to 1.98% and -1.48%. This pattern reflects a significant enhancement in operational profitability over time, despite some recent fluctuations.

Asset Turnover

Asset turnover ratios display gradual growth. The ratio starts near 0.34 in early 2020 and generally trends upward with minor fluctuations, reaching levels near 0.47 by mid-2025. This trend indicates improving efficiency in using assets to generate revenues across the periods analyzed.

Financial Leverage

Financial leverage demonstrates considerable changes, decreasing sharply from 6.29 in April 2019 to about 1.61 by July 2019, thereafter gradually rising to a peak above 3.5 between early 2021 and early 2022. The ratio then declines fairly steadily to around 2.53 by April 2025. This pattern suggests a reduction in debt-related risk early on, followed by moderate increases, and a subsequent controlled deleveraging in the recent years.

Return on Equity (ROE)

ROE mirrors the trend in profitability and leverage, starting with strongly negative returns near -19% in early 2020, deteriorating further to around -22% by early 2022. Following this, ROE shows consistent improvements, turning positive around early 2024, peaking at approximately 5.97% in October 2024, before declining slightly thereafter. The initial negative returns reflect early losses, while recent positive returns indicate progress toward profitability despite some renewed pressure in the latest quarter.

Net Profit Margin

The net profit margin shows a clear improving trend over the periods analyzed. Initially, margins were significantly negative, reaching as low as -29.45%. From early 2020 onwards, there is a consistent reduction in losses, with the margin moving from -23.97% to gradually less negative figures such as -8.18% by early 2023. By mid-2023 to late 2024, profit margins become positive, peaking at 4.84%, indicating a transition to profitability. However, in the most recent periods (early 2025), the margin declines again to slightly negative levels, ending near -4.17%.

Asset Turnover

Asset turnover started being reported from early 2020 with values around 0.34, and demonstrates a general upward trend. Despite some fluctuations, the ratio steadily increases across the quarters, peaking at 0.49 several times between mid-2023 and late 2024. This suggests an improving efficiency in utilizing assets to generate revenue. Slight dips occur at certain intervals (e.g., 0.45 in early 2025), but the overall direction remains positive, maintaining relatively high turnover ratios around 0.47.

Return on Assets (ROA)

The ROA exhibits improvement over the time span, starting from a deep negative level of -10.09% and progressively moving towards less negative and eventually positive territory. ROA moves steadily upward, surpassing the breakeven point to 1.34% by mid-2023, reaching a peak of 2.36% near late 2023. Similar to the net profit margin, ROA experiences a decline in the latest periods to slightly negative figures, around -1.98% by early 2025. The trends in ROA align closely with those observed in net profit margin, reflecting the impact of profitability changes on overall asset returns.

EBIT Margin Trend

The EBIT margin demonstrated a consistent improvement over the periods analyzed, beginning with a deep negative margin of -28.94% and gradually decreasing in negativity. From early 2020, the margin steadily improved, reaching positive territory around the period ending October 2023. The highest point observed was 6.77% in January 2025, followed by a decline to -1.48% by the last date recorded. This trend indicates a movement toward operational profitability initially, followed by a recent reversal in margin performance.

Asset Turnover Dynamics

Asset turnover showed a generally upward trajectory with some fluctuations. Starting near 0.34, it increased gradually over time, peaking at about 0.49 in several quarters from late 2023 through early 2025. This indicates improved efficiency in utilizing assets to generate revenue, although slight declines toward the last periods suggest some moderation in asset utilization.

Return on Assets (ROA) Pattern

ROA followed a trajectory roughly paralleling EBIT margin improvements, but with more volatility. Starting with negative values exceeding -10%, the ratio improved steadily to positive values by October 2023, peaking at 2.36% in January 2025. Thereafter, a decline was noted, with ROA turning negative again by the last period. This pattern signals an initial recovery in asset profitability that weakened toward the end of the timeline.

Tax Burden Observations

The tax burden ratio was mostly unreported until the last few periods where it exhibited significant volatility, fluctuating between negative and positive values. Such variation may reflect tax-related anomalies or adjustments, complicating interpretation for these quarters.

Interest Burden Insights

Interest burden data was sparse and only available toward the most recent periods. Values increased from 0.32 to peak near 0.89, then trended downward to 0.66. These figures suggest fluctuating financial expenses relative to earnings before interest and taxes, with a recent easing in interest burden.

Overall Analysis

Collectively, the data show a company recovering from significant losses in profitability and improving operational efficiency over several years. Both EBIT margin and ROA moved substantially from negative to positive before showing signs of weakening in the most recent periods. Asset turnover improved steadily, supporting better revenue generation from assets. The variability in tax and interest burden near the end of the timeline may indicate rising uncertainties or changes in the financial or tax structure affecting profitability. Continued monitoring is advised to assess whether the recent downturn signals a short-term fluctuation or a longer-term trend.

The analysis of the quarterly financial data reveals several notable trends in the company’s profitability and burden ratios over the reported periods.

Tax Burden

The Tax Burden ratio shows considerable volatility in recent quarters. Initially, data is unavailable; however, from January 2024 onward, the ratio fluctuates sharply, with values such as -0.98 in January 2024, increasing to positive values around 0.7 to 0.8 in following quarters before falling again toward -0.37 by April 2025. This variability may indicate unstable tax impacts or irregular tax expense recognition during these periods.

Interest Burden

The Interest Burden ratio is only present starting January 2024, where it begins at 0.32 and improves subsequently to values near 0.83–0.89 before slightly declining to 0.66 by July 2024. This trend suggests a reduction in interest expense relative to earnings before interest and taxes (EBIT), reflecting improved operational earnings capacity or better interest cost management in early 2024.

EBIT Margin

An analysis of the EBIT Margin from October 2019 to April 2025 shows a consistent improvement over time. Starting from a deeply negative margin of -28.94% in October 2019, the margin steadily rises, crossing into single-digit negative percentages in 2021 and turning positive by late 2023. The peak EBIT Margin of 6.77% occurs in October 2024, followed by a slight decline to 1.98% and then to -1.48% by April 2025. The general upward trend suggests enhanced operational efficiency and profitability, though the recent decrease towards early 2025 may require further examination.

Net Profit Margin

The Net Profit Margin exhibits a similar trend to the EBIT Margin, beginning with a significant negative margin of -29.45% in October 2019. There is a gradual improvement through the quarters, though intermittently interrupted by some declines, such as a drop to -16.48% in January 2022 and -15.86% in April 2021. The margin reaches positive territory in late 2023, peaking at 4.84% in October 2024. However, it decreases afterward, falling to -4.17% by April 2025. This pattern reflects improving profitability after consistent losses, with recent downward pressure indicating potential challenges affecting net income.

Overall, the financial data illustrates a long-term recovery in profitability measures, evidenced by the ascending EBIT and Net Profit Margins. The variability seen in tax and interest burden ratios in the latest quarters introduces additional complexity, potentially linked to changing financial or operational circumstances. Continuous monitoring is advised to determine if recent declines continue or if margins stabilize or improve further.