Crowdstrike Holdings Inc (CRWD)
Solvency ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.65 | 2.88 | 3.43 | 3.53 | 3.14 |
Crowdstrike Holdings Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 from January 31, 2021, to January 31, 2025, signaling that the company operates with minimal debt obligations compared to its total assets, capital, and equity.
Additionally, the financial leverage ratio, which measures the company's reliance on debt financing, has shown a decreasing trend over the same period. Starting at 3.14 on January 31, 2021, the ratio decreased steadily to 2.65 as of January 31, 2025. This decline indicates that Crowdstrike Holdings Inc has been reducing its financial leverage and becoming less reliant on debt to finance its operations.
Overall, the consistent low levels of debt ratios and decreasing trend in the financial leverage ratio suggest that Crowdstrike Holdings Inc maintains a solid solvency position, with a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 3.07 | 5.77 | -5.31 | -5.34 | -55.36 |
The interest coverage ratio of Crowdstrike Holdings Inc has shown significant improvement over the years based on the provided data. In January 2021, the interest coverage ratio was negative at -55.36, indicating the company's operating income was insufficient to cover its interest expenses. However, the company managed to reduce the negative ratio substantially by January 2022 to -5.34 and further to -5.31 by January 2023.
The trend reversed positively from January 2024 onwards, with the interest coverage ratio turning positive at 5.77 and slightly decreasing to 3.07 by January 2025. This indicates that Crowdstrike Holdings Inc has significantly enhanced its ability to cover interest expenses with its operating income during these years.
The improving trend in interest coverage suggests that the company may have successfully managed its debt obligations and increased its profitability over the years, which is a positive sign for investors and creditors. However, it is important to continue monitoring this ratio to ensure the company's financial health and sustainability.