Crowdstrike Holdings Inc (CRWD)

Return on total capital

		Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	192,991	147,280	37,765	-44,725	-102,424	-135,496	-121,730	-121,587	-130,199	-137,133	-130,175	-114,434	-96,909	-86,233	-99,106	-110,241	-132,072	-139,410
Long-term debt	US$ in thousands	742,866	742,494	742,122	741,750	741,377	741,005	740,633	740,261	739,889	739,517	739,145	738,772	738,400	738,029	—	—	—	0	—	—
Total stockholders’ equity	US$ in thousands	2,535,540	2,303,950	2,028,950	1,838,210	1,605,300	1,463,640	1,314,290	1,225,420	1,102,540	1,025,760	948,182	904,268	849,264	870,574	813,485	790,965	752,153	742,107	717,042	728,097
Return on total capital		5.89%	4.83%	1.36%	-1.73%	-4.36%	-6.15%	-5.92%	-6.19%	-7.07%	-7.77%	-7.71%	-6.96%	-6.10%	-5.36%	-12.18%	-13.94%	-17.56%	-18.79%

April 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $192,991K ÷ ($742,866K + $2,535,540K)
= 5.89%

Crowdstrike Holdings Inc has shown improvement in its return on total capital over the past year. The return on total capital increased from negative figures in the first half of 2019 to positive values in 2024. This indicates that the company has been more efficient in generating profits relative to its total capital employed.

The return on total capital was positive in the most recent period at 5.89%, signaling that the company is effectively utilizing its capital to generate returns for its shareholders. Although there was a slight dip in the previous quarter, the overall trend shows a positive trajectory.

It is important for investors and stakeholders to monitor this metric as it reflects the company's ability to generate profits from the total capital invested in the business. Continued improvement in the return on total capital is a positive indicator of Crowdstrike Holdings Inc's financial performance and efficiency.