Crowdstrike Holdings Inc (CRWD)
Profitability ratios
Return on sales
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 72.35% | 71.96% | 74.50% | 73.52% | 69.35% |
| Operating profit margin | -0.06% | -8.34% | -9.94% | -10.55% | -29.81% |
| Pretax margin | 3.82% | -7.06% | -11.32% | -10.02% | -28.53% |
| Net profit margin | 2.81% | -8.04% | -16.37% | -10.56% | -28.94% |
CrowdStrike Holdings Inc has shown a consistent and healthy trend in its gross profit margin over the past five years, ranging from 69.35% in 2020 to 74.50% in 2022. This suggests the company has been efficient in managing its direct costs related to production or service delivery.
However, when looking at operating profit margin, the company's performance is more volatile, with negative margins in 2020 and 2021, and slight improvements in 2022 and 2023. The negative operating margin indicates that the company's operating expenses have exceeded its gross profit, indicating inefficiencies in cost management.
Similarly, the pretax margin reflects the company's ability to generate earnings before taxes. CrowdStrike Holdings Inc has maintained positive pretax margins over the last three years, with the highest being 3.82% in 2024. This suggests the company has been better at managing its taxes and other operating expenses compared to the operating profit margin.
The net profit margin measures the company's bottom line performance. Despite fluctuations, the company has shown improvements in net profit margin over the past five years, with positive margins from 2021 to 2024. This indicates that the company has been effective in controlling its overall expenses and boosting its profitability.
In conclusion, CrowdStrike Holdings Inc has shown improvement in its profitability ratios over the past few years, particularly in controlling costs and enhancing its bottom line performance. The company's ability to sustain and further enhance these margins will be crucial for its long-term growth and success.
Return on investment
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.03% | -3.78% | -3.94% | -3.39% | -10.40% |
| Return on assets (ROA) | 1.34% | -3.65% | -6.49% | -3.39% | -10.09% |
| Return on total capital | 4.83% | -6.15% | -7.77% | -5.37% | -18.78% |
| Return on equity (ROE) | 3.88% | -12.52% | -22.89% | -10.64% | -19.10% |
Crowdstrike Holdings Inc's profitability ratios have displayed a mixed performance over the past five years.
Operating return on assets (Operating ROA) has shown improvement from negative figures in previous years to -0.03% as of Jan 31, 2024. This indicates that the company is generating a small profit from its operating activities compared to its assets.
Return on assets (ROA) has seen fluctuations, with positive performance in 2024 at 1.34% compared to negative figures in the preceding years. This suggests that the company is more efficient in generating profits from its total assets in the most recent year.
Return on total capital has improved significantly in 2024 to 4.83% from negative figures in prior years. This ratio reflects the company's ability to generate profits from both equity and debt financing.
Return on equity (ROE) has also shown improvement from negative figures in previous years to 3.88% in 2024. This indicates that the company is becoming more efficient in generating profits for its shareholders per dollar of equity.
Overall, Crowdstrike Holdings Inc's profitability ratios have shown signs of improvement, particularly in ROA and ROE, indicating better efficiency and profitability compared to the past. However, the company still faces challenges in improving its returns to levels that are considered robust in the industry.