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.
Peer comparison
Jan 31, 2024