Crowdstrike Holdings Inc (CRWD)

Return on equity (ROE)

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Net income	US$ in thousands	-19,271	89,327	-182,285	-232,378	-92,629
Total stockholders’ equity	US$ in thousands	3,279,490	2,303,950	1,463,640	1,025,760	870,574
ROE		-0.59%	3.88%	-12.45%	-22.65%	-10.64%

January 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-19,271K ÷ $3,279,490K
= -0.59%

Based on the provided data, Crowdstrike Holdings Inc's return on equity (ROE) has shown fluctuations over the years:

1. January 31, 2021: The ROE was at -10.64%, indicating that the company generated a negative return on equity, which could be a cause for concern.

2. January 31, 2022: The ROE worsened to -22.65%, signifying a significant decline in the company's ability to generate profits from shareholders' equity.

3. January 31, 2023: Although there was a slight improvement, with the ROE at -12.45%, the company still struggled to deliver positive returns to shareholders.

4. January 31, 2024: Crowdstrike experienced a turnaround as the ROE improved to 3.88%, showing that the company started to generate a positive return on equity.

5. January 31, 2025: However, the positive trend was not sustained, with the ROE slipping back into negative territory at -0.59%.

In conclusion, Crowdstrike Holdings Inc has had a volatile ROE performance over the years, with periods of negative returns interspersed with occasional positive returns. This indicates inconsistent profitability and efficiency in utilizing shareholders' equity, highlighting the need for further analysis to understand the factors contributing to these fluctuations.