Crowdstrike Holdings Inc (CRWD)

Return on total capital

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	147,283	-135,526	-137,171	-86,310	-139,340
Long-term debt	US$ in thousands	742,494	741,005	739,517	738,029	0
Total stockholders’ equity	US$ in thousands	2,303,950	1,463,640	1,025,760	870,574	742,107
Return on total capital		4.83%	-6.15%	-7.77%	-5.37%	-18.78%

January 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $147,283K ÷ ($742,494K + $2,303,950K)
= 4.83%

The return on total capital for Crowdstrike Holdings Inc has shown fluctuating trends over the past five years. In the most recent year, as of January 31, 2024, the return on total capital improved to 4.83% compared to negative figures in the previous years. This indicates that the company has been able to generate a positive return relative to its total capital base in the most recent year. However, it is important to note that the return on total capital was negative in the preceding four years, with the lowest being -18.78% as of January 31, 2020.

The improvement in the return on total capital in the latest year suggests that the company may have made strategic adjustments to enhance its profitability and efficiency in utilizing its capital. Investors and stakeholders may view this positive change as a sign of better financial performance and management effectiveness. Nonetheless, ongoing monitoring of the company's ability to consistently generate positive returns on its total capital is recommended to assess its long-term financial health and sustainability.