CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Debt Ratios

The debt to equity ratio presents data starting from the period ending January 31, 2021, where it was 0.85 and displays a consistent downward trend over the subsequent quarters. By April 30, 2025, it decreases significantly to 0.20, indicating a steady reduction in reliance on debt relative to equity. When including operating lease liabilities, the debt to equity ratio begins slightly lower at 0.89 in January 31, 2021 and similarly declines over time, reaching 0.22 by April 30, 2025. This inclusion shows a marginally higher leverage compared to the ratio excluding these liabilities, but the overall downward trajectory is preserved. The debt to capital ratio mirrors these trends, dropping from 0.46 at January 31, 2021 to 0.17 by April 30, 2025, while the version including operating lease liabilities declines from 0.47 to 0.18 in the same period. These decreases suggest improved capital structure and reduced debt burden relative to total capital. Regarding debt relative to total assets, values fall from 0.27 on January 31, 2021, to 0.08 on April 30, 2025. Including operating lease liabilities, the ratio decreases from 0.29 to 0.09. These figures indicate a diminishing proportion of assets financed by debt, enhancing asset quality and financial stability.

Financial Leverage

The financial leverage ratio exhibits variability with an initial notable value of 6.29 in April 30, 2019, followed by lower readings in later periods mostly in the range of approximately 2.5 to 3.5 after January 31, 2021. A slight downward trend is observed from around 3.5 in early 2021 to approximately 2.47 by April 30, 2025, signaling a moderate decrease in the use of debt relative to equity in financing overall assets.

Interest Coverage

Interest coverage ratios are negative in many earlier periods up to mid-2023, indicating operating losses relative to interest expenses and potential challenges in meeting interest obligations from operating earnings. The ratio improves substantially from January 31, 2024, onwards, turning positive at 1.41 and peaking at 9.33 on October 31, 2024. This improvement suggests enhanced operational profitability and better capability to cover interest expenses. However, after this peak, the ratio declines again to negative territory by April 30, 2025 (-7.16), indicating renewed operational difficulties impacting interest expense coverage.

Overall Analysis

The company demonstrates a consistent and marked reduction in leverage ratios over the observed periods, especially from early 2021 onward. This suggests a strategic effort to deleverage and strengthen the balance sheet by reducing debt levels relative to equity, capital, and assets. Despite the reduction in leverage, fluctuations in financial leverage ratios imply a nuanced approach to financing structure, with a stabilized moderate leverage level reached in recent periods. The interest coverage ratio signals a period of operational strain with persistent negative coverage ratios until early 2024, followed by a phase of recovery and improved earnings relative to interest costs, and a subsequent deterioration again by early 2025. This volatility in interest coverage highlights ongoing challenges in sustaining consistent profitability to service debt. Collectively, the data reflect prudent financial management in reducing indebtedness while also expose operational profitability challenges reflected in interest coverage ratios, which warrant continued monitoring and strategic response.

Total Debt

The total debt figures are available starting from January 31, 2021, showing a gradual and consistent increase over the reported periods. Beginning at approximately $738 million, total debt rises steadily each quarter, reaching around $745 million by April 30, 2025. The rate of increase is modest and linear, indicating stable incremental borrowing or debt accumulation without any sharp rises or reductions.

Total Stockholders’ Equity

The stockholders' equity shows a substantial growth trend from April 30, 2019, onwards. Initially recorded at about $73 million, equity experiences a remarkable and consistent increase through the years, surpassing $3.7 billion by April 30, 2025. This trend indicates strong equity capital growth, possibly through retained earnings, new equity issuance, or a combination of factors, reflecting an overall strengthening of the company’s financial position from an equity perspective.

Debt to Equity Ratio

Starting from January 31, 2021, the debt to equity ratio exhibits a clear and steady decline, moving from 0.85 to 0.20 by April 30, 2025. This trend suggests that despite the gradual increase in total debt, the increase in equity has outpaced debt growth substantially. The declining ratio points to an improving leverage position, indicating reduced financial risk and a stronger capital structure over time.

Summary Insight

Overall, the data imply a healthy financial progression characterized by robust growth in equity and controlled increase in debt. The declining debt to equity ratio reinforces the view of strengthening financial stability and effective capital management. This pattern suggests that the company is potentially reducing its reliance on debt financing relative to equity, enhancing its creditworthiness and financial resilience moving forward.

Total Debt (Including Operating Lease Liability)

The total debt showed no reported values initially but started to be recorded from July 31, 2020. At that point, the debt was approximately 39.6 million USD and increased slightly to around 44.8 million USD by October 2019. Subsequently, the debt rose sharply to 778.9 million USD as of January 31, 2020, maintaining a relatively stable range around 770 to 795 million USD over the following quarters, with minor fluctuations ending at approximately 810.5 million USD by July 31, 2025.

Total CrowdStrike Holdings, Inc. Stockholders’ Equity

Stockholders' equity demonstrated consistent growth throughout the periods observed. Initially recorded at 72.7 million USD in April 2019, equity rose steadily over time, reaching over 1 billion USD by January 31, 2022. This growth continued with a notable accelerating trend, culminating in an increase to approximately 3.76 billion USD by April 30, 2025. The trend indicates continued capital accumulation and an expanding equity base.

Debt to Equity Ratio (Including Operating Lease Liability)

The debt to equity ratio began to be reported in July 2020 at 0.05 and stayed within a low range for several periods, hovering between 0.05 and 0.06 initially. A sharp increase to 0.89 occurred in January 2021, reflecting a significant relative increase in debt compared to equity at that time. After this peak, the ratio exhibited a clear and continuous downward trend, decreasing steadily quarter over quarter to 0.22 by April 2025. This decline suggests an improving financial leverage position with equity growing at a faster rate than debt or debt levels being managed down relative to equity.

Total Debt

The total debt shows a consistent and stable pattern starting from the earliest available value near 738,000 thousand US dollars around January 2021. Over the subsequent periods, the total debt increases marginally in small increments, rising steadily to approximately 744,700 thousand US dollars by April 2025. The debt level remains relatively flat over this timeline, indicating limited additional borrowing or repayment activity.

Total Capital

Total capital demonstrates a significant upward trend throughout the entire observed period. Beginning from approximately 72,735 thousand US dollars in April 2019, it increases gradually with occasional larger jumps, notably around January 2021 when it surpasses 1.6 million US dollars. The growth continues consistently, reaching over 4.5 million US dollars by April 2025. This upward trajectory suggests an expanding capital base, possibly through retained earnings, equity financing, or a combination of factors that contribute to increased capitalization.

Debt to Capital Ratio

The debt to capital ratio exhibits a persistent declining trend over the reported timeframe. Starting from a value around 0.46 in January 2021, the ratio steadily decreases nearly every quarter, reaching approximately 0.17 by April 2025. This indicates an improving capital structure with a lesser reliance on debt financing relative to total capital. The decline in this ratio aligns with the observed stable total debt and the marked increase in total capital, reflecting a stronger equity base or other forms of capital increasing faster than debt levels.

General Insights

Overall, the financial data highlights a company that is maintaining consistent debt levels while significantly growing its total capital. The resulting reduction in the debt to capital ratio suggests enhanced financial stability and a more conservative leverage position over time. This pattern may imply a strategic shift to reinforce the balance sheet, potentially lowering financial risk and improving creditworthiness. The growth in total capital could be driven by operational profitability, strategic financing, or capital injections, though the data does not specify the sources.

The financial data over the observed periods reveals several notable trends with respect to the company’s debt and capital structure.

Total Debt (Including Operating Lease Liability)

The total debt showed an absence of recorded values in the early periods until a sudden appearance of debt around July 2020, approximately $39.58 million, rising modestly to about $44.78 million by October 2020. Subsequently, there was a substantial increase around January 2021, with debt jumping sharply to approximately $779 million. After this spike, total debt remained relatively stable, fluctuating slightly but generally trending downward from around $794 million in April 2022 to roughly $785 million by April 2025. This suggests a significant debt acquisition at the start of 2021, followed by a controlled reduction or stabilization phase in subsequent years.

Total Capital (Including Operating Lease Liability)

Total capital started with a lower base before increasing dramatically from mid-2020 to early 2021. Specifically, capital descended slightly from $727.35 thousand in April 2019 to $717.04 thousand in October 2019 but then surged from $835.74 thousand in July 2020 to $1.65 million by January 2021. From this point onward, the capital maintained an upward trajectory with consistent growth observed throughout each quarter. By April 2025, total capital had more than doubled since early 2021, reaching approximately $4.57 billion. This continuous increase reflects aggressive capital accumulation or equity infusion over the period.

Debt to Capital Ratio

The ratio was not reported in early periods until it appeared at 0.05 in mid-2020, remaining steady for a couple of quarters before rising sharply to roughly 0.47 by January 2021. This spike corresponds with the large increase in total debt previously noted. Following this peak, the debt to capital ratio exhibited a clear downward trend from 0.48 in April 2021 to approximately 0.18 by April 2025. This decline in the ratio suggests a decrease in leverage relative to capital, indicating possible deleveraging efforts or faster growth in capital relative to debt.

In summary, the data indicates a significant leverage event occurring between late 2020 and early 2021, followed by steady capital growth and a concurrent reduction in leverage as measured by the debt to capital ratio. The company appears to have strengthened its capital base substantially while managing and reducing debt levels proportionally over the subsequent years.

Total Debt

The total debt figure becomes available starting from January 31, 2021, with a value around 738 million US dollars. Across the observed periods, total debt remains remarkably stable, showing only a marginal incremental trend, rising slightly from approximately 738 million to roughly 745 million US dollars by July 31, 2025. This indicates that the company maintained a relatively constant debt level over the analyzed timeframe without significant increases or reductions.

Total Assets

Total assets demonstrate a consistent and substantial growth trend from April 30, 2019, through July 31, 2025. Beginning at approximately 457 million US dollars in April 2019, assets increase steadily, with notable acceleration after January 31, 2021. The asset base grows to over 9.2 billion US dollars by July 31, 2025. This expansive growth in total assets reflects a substantial increase in the company's resource base and potential operational capacity.

Debt to Assets Ratio

The debt-to-assets ratio data is available starting January 31, 2021. The ratio shows a clear declining trend, beginning at 0.27 and consistently falling throughout the subsequent periods to 0.08 by July 31, 2025. This trend reflects a significant reduction in the proportion of debt relative to total assets, suggesting an improvement in the company's financial leverage and solvency position over time. The company appears to be strengthening its balance sheet by growing assets faster than debt or actively managing to reduce its proportional debt load.

The financial data reveals several notable trends in the company’s debt and asset structure over the observed periods.

Total Debt (Including Operating Lease Liability)

Total debt figures begin to be reported starting mid-2020, initially showing values around 39,580 thousand USD and rising slightly to about 44,777 thousand USD, before experiencing a significant jump to values exceeding 770,000 thousand USD from early 2021 onward. This elevated debt level then remains relatively stable with only minor fluctuations through to mid-2025, indicating a period of high leverage compared to the earlier reported amounts.

Total Assets

Total assets display a strong and consistent growth trend throughout the entire period from April 2019 to mid-2025. Starting around 457,361 thousand USD, the company’s assets increase significantly, reaching over 9,288,859 thousand USD by mid-2025. This substantial asset growth suggests expansion or increased investments, underscoring the company’s ongoing scale-up or accumulation of resource base.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio is absent in the earlier periods but once available from mid-2020, it initially registers at a low level of around 0.03. However, there is a marked increase reaching approximately 0.29 by early 2021, coinciding with the dramatic increase in total debt. Following this peak, the ratio exhibits a clear declining trend, steadily decreasing from 0.27 through 0.09 by mid-2025. This decline indicates improving leverage metrics and suggests the company is either paying down debt or growing its asset base faster than its liabilities, thereby enhancing its financial stability.

In summary, the company has experienced significant asset growth combined with a period of increased debt load around early 2021. Since that peak, the company's leverage ratio has been consistently decreasing, reflecting a reduction in debt relative to assets or an increase in assets outpacing debt growth. This trend points towards strengthening financial health and potentially a more conservative approach to debt management moving forward.

Total assets

The total assets show a consistent upward trend throughout the periods analyzed. Starting at approximately 457 million US dollars in April 2019, there is a substantial increase reaching over 1.7 billion US dollars by October 2020. This growth accelerates notably from early 2021 onwards, culminating in assets surpassing 9.2 billion US dollars by July 2025. This indicates sustained asset accumulation over time, with particularly rapid expansion during the later periods.

Total stockholders’ equity

Stockholders’ equity also displays growth across the periods, although with less volatility compared to total assets. Beginning with a relatively modest 72.7 million US dollars in April 2019, equity rapidly climbs to over 813 million US dollars by October 2020. From then on, it continues to increase steadily, reaching approximately 3.76 billion US dollars by July 2025. This steady increase suggests ongoing capital infusion, retained earnings accumulation, or valuation growth contributing to equity enhancement.

Financial leverage ratio

The financial leverage ratio declines sharply from 6.29 in April 2019 to roughly 1.6 in July 2019. After this initial decrease, it gradually rises again, peaking around 3.53 in January 2022. Subsequent periods show a gradual downward trend in leverage, reducing to approximately 2.47 by July 2025. This pattern reflects a significant initial deleveraging, followed by an increase in leverage, and a later moderate reduction, suggesting a dynamic approach to debt and equity financing over the term observed.

Overall analysis

The data demonstrates a robust growth trajectory in both total assets and stockholders’ equity over the period analyzed, indicative of expansion and strengthening of the financial base. The initial sharp decline in financial leverage implies a shift towards less reliance on debt relative to equity early on, but the subsequent increase and later decline in leverage ratios indicate adjustments in the capital structure, possibly in response to strategic investment activities or market conditions. The pattern of asset growth outpacing equity growth slightly is reflected in the fluctuating leverage ratios, with leverage remaining at moderate levels by the end of the period.

The Earnings before Interest and Tax (EBIT) for the analyzed periods show significant volatility, with a general trend of losses in the earlier quarters progressing towards profitability before declining again. Initially, EBIT values are consistently negative, indicating operational challenges or high expenses relative to earnings. From April 2019 through January 2023, EBIT fluctuates, with some periods showing reduced losses but no consistent positive performance. Starting in April 2023, EBIT turns positive, peaking in January 2024 at 74,972 thousand US dollars, denoting improved operational efficiency or revenue growth during this timeframe. However, after this peak, EBIT experiences a sharp decline, turning negative again by October 2024 and continuing to deteriorate through July 2025, with the lowest point at -83,172 thousand US dollars, reflecting renewed operational difficulties or increased costs.

Interest expense remains relatively stable throughout all periods, ranging between 1,000 and 7,000 thousand US dollars, with a gradual increase over time. This steady rise suggests ongoing or increasing debt obligations, but the growth is moderate and does not exhibit abrupt changes.

The interest coverage ratio, which measures the ability to cover interest expenses from EBIT, exhibits a marked improvement over the observed periods but remains negative or very low for much of the timeline. In early periods, the ratio is deeply negative, indicating that EBIT was insufficient to cover interest expenses by a wide margin. Gradually, this ratio improves, turning positive in January 2024 (with a value of 1.41), then increasing to a peak of 9.33 in October 2024, signaling that EBIT significantly exceeds interest expenses at this point and the financial position regarding debt servicing is strong. However, the ratio declines sharply thereafter, dropping to -7.16 by July 2025, paralleling the fall in EBIT, and indicating renewed challenges in covering interest costs from earnings.

Overall, the data reveals a trajectory from significant operational losses and limited ability to cover interest expenses, through a period of operational improvement and greater financial health, followed by a reversal into operational and financial stress in the most recent periods. The stability of interest expense suggests that debt obligations remain consistent, so the fluctuations in EBIT and interest coverage ratio primarily reflect changes in operational performance rather than financing structure.

EBIT Trend

From consistent losses towards profitability around early 2023-2024, then a sharp return to losses by mid-2025.

Interest Expense

Relatively stable with a moderate upward trend over the full timeline, indicating consistent debt service obligations.

Interest Coverage Ratio

Deeply negative initially, improving to positive and strong coverage in early 2024, then declining back to negative by mid-2025.