CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Debt to Equity Ratio

The debt to equity ratio exhibited a continuous decline from 0.85 in 2021 to 0.23 projected in 2025, indicating a steady reduction in reliance on debt relative to shareholders' equity. When including operating lease liabilities, the ratio follows a similar downward trend from 0.89 to 0.24 over the same period.

Debt to Capital Ratio

This ratio also decreased consistently from 0.46 in 2021, reaching 0.18 by 2025. Including operating lease liabilities, the decline is analogous, dropping from 0.47 to 0.19. This suggests an overall strengthening of the capital structure through reduced debt proportions.

Debt to Assets Ratio

The debt to assets ratio shows a diminishing trend from 0.27 in 2021 to 0.09 in 2025, signaling a lower proportion of liabilities in the asset base. The inclusion of operating lease liabilities yields slightly higher ratios but mirrors the same downtrend, decreasing from 0.29 to 0.09.

Financial Leverage

Financial leverage rose markedly from 1.89 in 2020 to a peak of 3.53 in 2022, before gradually declining to 2.65 in 2025. This indicates an initial increase in assets funded by equity and debt combined, followed by a reduction in the relative leverage.

Interest Coverage Ratio

The interest coverage ratio was negative and significantly low from 2020 through 2023, indicating difficulty in covering interest expenses from operating earnings. It improves sharply in 2024 to a positive 5.77 and declines somewhat to 3.07 in 2025, reflecting an enhanced ability to meet interest obligations in the forecasted periods.

Fixed Charge Coverage Ratio

Similarly, the fixed charge coverage ratio remained negative from 2020 until 2023, which suggests insufficient earnings to cover fixed charges. The ratio turns positive in 2024 at 3.98 and decreases to 2.25 in 2025, denoting an improved capacity to meet fixed financial commitments.

Total Debt

The total debt remained relatively stable over the observed periods, with a slight increase from approximately $738 million in January 2021 to around $744 million in January 2025. This indicates a marginal rise in the company's leverage through debt financing, but the overall debt level shows minimal fluctuation.

Total Stockholders’ Equity

The stockholders’ equity exhibited a strong upward trend throughout the period. Starting from approximately $742 million in January 2020, equity increased consistently each year, reaching nearly $3.28 billion by January 2025. This significant growth reflects a substantial improvement in the company’s net asset base, possibly driven by retained earnings, capital raises, or asset revaluations.

Debt to Equity Ratio

The debt to equity ratio steadily declined from 0.85 in January 2021 to a notably low 0.23 by January 2025. This decrease highlights a shift towards lower financial leverage, indicating that the company is increasingly relying on equity rather than debt to finance its operations and growth. This trend suggests an improving financial structure and potentially lower financial risk over time.

The financial data reveals notable trends in the company's debt, equity, and leverage ratios over the analyzed period.

Total Debt (including operating lease liability)

The total debt levels fluctuated slightly from 778,992 thousand US dollars in 2021 to 774,716 in 2022, indicating a minor reduction. Subsequently, debt increased again in 2023 and 2024, reaching 792,874 thousand, before marginally decreasing to 788,901 thousand in 2025. Overall, the total debt remained relatively stable, with small variations over the years.

Total Stockholders' Equity

The stockholders' equity showed a consistent and substantial increase throughout the period. Starting from 742,107 thousand US dollars in 2020, equity rose steadily each year, reaching 3,279,494 thousand by 2025. This represents more than a fourfold increase over the six-year span, indicating strong capital growth.

Debt to Equity Ratio (including operating lease liability)

There is a clear downward trend in the debt to equity ratio, falling from 0.89 in 2021 to 0.24 in 2025. This suggests the company has been progressively reducing its leverage, relying less on debt relative to its equity base. The declining ratio reflects improved financial stability and potentially a reduced risk profile.

Total Debt

The total debt level shows a stable, slightly increasing trend over the observed periods from January 31, 2021, through January 31, 2025. Starting at approximately $738 million in 2021, it incrementally rises each year, reaching about $744 million by 2025. This suggests a controlled approach to debt management with minimal fluctuation.

Total Capital

Total capital exhibits significant growth during the same timeframe. Beginning at around $1.6 billion in 2021, it demonstrates consistent annual increases, accelerating notably after 2023 to reach over $4 billion by 2025. This upward trajectory indicates strong capital expansion and likely reflects an increase in equity or other forms of financing.

Debt to Capital Ratio

The debt to capital ratio decreases steadily from 0.46 in 2021 to 0.18 in 2025. This consistent decline indicates that the growth in total capital outpaces the growth in total debt. Consequently, the company is progressively reducing its reliance on debt financing relative to its overall capital structure, potentially improving financial flexibility and creditworthiness over the analyzed period.

Total Debt (Including Operating Lease Liability)

The total debt exhibited a relatively stable pattern from January 31, 2021, to January 31, 2025, beginning at approximately $778.99 million and fluctuating slightly around the mid-700 million range, ending at approximately $788.90 million. This suggests that the company maintained its debt level with minimal variation during this period.

Total Capital (Including Operating Lease Liability)

Total capital increased significantly across the observed periods. Starting from about $743.11 thousand in January 31, 2020 (note: data for 2020 appears to be an outlier or differently scaled), there was a substantial rise to approximately $1.65 billion by January 31, 2021. The total capital then continued to grow steadily each year, reaching roughly $4.07 billion by January 31, 2025. This reflects a strong capital base expansion over the timeframe.

Debt to Capital Ratio (Including Operating Lease Liability)

The debt to capital ratio demonstrated a clear declining trend, moving from approximately 0.47 in January 31, 2021, to 0.19 by January 31, 2025. This downward progression indicates that the company’s reliance on debt financing relative to its total capital diminished steadily. The reduction in leverage suggests an improvement in financial stability and possibly a strategic focus on reducing financial risk.

Total debt

The total debt exhibits a slight upward trend from fiscal year ending January 31, 2021 through January 31, 2025, increasing modestly from 738,029 thousand US dollars to 743,983 thousand US dollars. This indicates relatively stable debt levels over the observed period with minimal growth in liabilities.

Total assets

Total assets show substantial growth during the same period, rising significantly from 2,732,533 thousand US dollars in 2021 to 8,701,578 thousand US dollars in 2025. This represents a continuous and strong asset base expansion, more than tripling across five years, indicative of robust asset accumulation or investment.

Debt to assets ratio

The debt to assets ratio displays a consistent and pronounced decline from 0.27 in 2021 to 0.09 in 2025. This downward trend reflects improved financial leverage, suggesting that the company is increasingly financing its assets through equity rather than debt. The sharp reduction in this ratio indicates an enhanced solvency position and potentially lower financial risk over time.

The financial data reveals notable trends regarding the company's leverage and asset growth over the analyzed periods.

Total debt (including operating lease liability)

The total debt level remained relatively stable from January 31, 2021, through January 31, 2025, fluctuating slightly between approximately 774.7 million USD and 792.9 million USD. This indicates a consistent debt position without significant increases or decreases during this period.

Total assets

The total assets demonstrate a strong and sustained growth trend, rising from approximately 1.4 billion USD at the beginning of the period to about 8.7 billion USD by January 31, 2025. This more than sixfold increase signifies substantial expansion of the company's asset base over the years.

Debt to assets (including operating lease liability)

The debt-to-assets ratio decreased markedly from 0.29 in January 31, 2021, to 0.09 in January 31, 2025. This declining trend suggests an improvement in the company’s capital structure, reflecting a relatively lower reliance on debt financing as the asset base has grown significantly while debt levels have remained stable.

Overall, the data indicates a strategy that focuses on asset growth accompanied by stable debt levels, leading to a decreased leverage over time. This pattern points to enhanced financial stability and potentially improved creditworthiness, assuming other financial factors remain favorable.

Total assets

The total assets exhibit a consistent upward trajectory over the analyzed period. Starting at approximately $1.4 billion in early 2020, the value nearly doubled by 2021 and continued to grow substantially each year, reaching around $8.7 billion by early 2025. This trend indicates significant asset accumulation, suggesting expansion or increased investment activities.

Total stockholders’ equity

Stockholders' equity has also increased steadily, rising from about $742 million in 2020 to nearly $3.3 billion by 2025. The growth pace appears to accelerate from 2022 onwards, reflecting possibly higher retained earnings or additional equity financing. The rising equity base contributes positively to the company's net worth and financial stability.

Financial leverage

The financial leverage ratio shows an increasing trend initially, rising from 1.89 in 2020 to a peak of approximately 3.53 in 2022, indicating greater use of debt relative to equity. However, from 2023 onwards, the ratio declines steadily down to 2.65 by 2025. This suggests a strategic reduction in leverage or improved equity growth outpacing debt accumulation, which may contribute to a more balanced capital structure and potentially lower financial risk.

The analysis of the financial data reveals several significant trends concerning earnings before interest and tax (EBIT), interest expense, and interest coverage ratios over the period from January 2020 to January 2025.

Earnings Before Interest and Tax (EBIT)

EBIT exhibited a negative trend initially, with considerable losses reported from January 2020 through January 2023, fluctuating between approximately -139 million and -134 million US dollars. Notably, in January 2024, there is a marked positive turnaround, with EBIT rising sharply to a positive 148.6 million US dollars, followed by a decline to 80.8 million in January 2025. This shift from persistent negative EBIT to positive values indicates a substantial improvement in underlying operational profitability starting in 2024.

Interest Expense

Interest expense increased significantly over the entire period. Starting from a relatively low base of 442 thousand US dollars in January 2020, it escalated steadily, reaching over 26 million US dollars by January 2025. The rise reflects a likely increase in debt or borrowing costs, which has implications for financial leverage and the company's expense structure.

Interest Coverage Ratio

The interest coverage ratio, which measures the company's ability to meet interest obligations from operating earnings, shows a dramatic shift. From deeply negative values starting at -315.25 in January 2020 and improving but remaining negative through January 2023, the ratio turned positive in January 2024 to 5.77 and declined slightly to 3.07 in January 2025. The negative values in the early years align with negative EBIT, indicating an inability to cover interest expenses. The positive turn reflects improved operational earnings relative to interest expenses, signaling enhanced financial stability and capacity to service debt.

Overall, the data indicate a significant operational recovery beginning in 2024, moving from sustained losses to profitable EBIT levels. However, the steady increase in interest expenses suggests growing debt obligations, although the improved interest coverage ratio shows these obligations are becoming more manageable relative to earnings. This dynamic presents a scenario of strengthening operating performance amid increasing financial commitments.

Earnings before fixed charges and tax

The earnings before fixed charges and tax exhibited considerable volatility over the examined periods. Initially, the values were negative, indicating operating losses, reaching -129,040 thousand USD in 2020 and improving somewhat to -76,002 thousand USD in 2021. However, this positive trend reversed in 2022 and 2023, with losses deepening again to approximately -123,530 and -123,480 thousand USD, respectively. Notably, there was a significant turnaround in 2024, with earnings shifting to a positive 164,083 thousand USD, followed by a decrease to 98,171 thousand USD in 2025. This pattern suggests fluctuations in operational performance, with a remarkable recovery starting in 2024.

Fixed charges

Fixed charges showed a consistent upward trajectory throughout the periods. Starting from 10,742 thousand USD in 2020, there was a gradual increase, reaching 11,867 thousand USD in 2021, then a sharp rise to 36,493 and 36,403 thousand USD in 2022 and 2023, respectively. The growth continued with fixed charges of 41,266 thousand USD in 2024 and 43,637 thousand USD in 2025. This steady increase indicates a rising burden of fixed financial obligations that could impact profitability.

Fixed charge coverage

The fixed charge coverage ratio remained negative during the initial four years, indicating that earnings were insufficient to cover fixed charges. Starting at -12.01 in 2020, the ratio improved slightly but remained negative at -6.4 in 2021, and further weakened to -3.39 for both 2022 and 2023, reflecting continued operating challenges relative to fixed financial costs. A significant improvement occurred in 2024, when the ratio turned positive to 3.98, denoting adequate coverage of fixed charges by earnings. The ratio declined somewhat to 2.25 in 2025 but stayed above zero, suggesting sustained, though moderated, financial stability in covering fixed obligations.