Crowdstrike Holdings Inc (CRWD)
Solvency ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.11 | 0.15 | 0.20 | 0.27 | 0.00 |
| Debt-to-capital ratio | 0.24 | 0.34 | 0.42 | 0.46 | 0.00 |
| Debt-to-equity ratio | 0.32 | 0.51 | 0.72 | 0.85 | 0.00 |
| Financial leverage ratio | 2.88 | 3.43 | 3.53 | 3.14 | 1.89 |
The solvency ratios of Crowdstrike Holdings Inc reflect the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has been declining over the years, indicating that the proportion of the company's total assets financed by debt has decreased. This trend suggests a stronger financial position and lower risk of insolvency.
Similarly, the debt-to-capital and debt-to-equity ratios show a decreasing trend, indicating that the company has been relying less on debt financing and has been increasing its reliance on equity. This shift towards a more equity-based capital structure is generally considered positive as it reduces financial risk.
The financial leverage ratio has also been decreasing over the years, indicating that the company is using less debt to finance its operations compared to equity. A lower financial leverage ratio suggests lower financial risk and greater financial stability.
Overall, the trend in Crowdstrike Holdings Inc's solvency ratios suggests a strengthening financial position and a prudent approach to balancing debt and equity in its capital structure.
Coverage ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.72 | -5.35 | -5.44 | -55.36 | -315.25 |
The interest coverage ratio for Crowdstrike Holdings Inc has shown significant fluctuations over the past five years. In January 2024, the interest coverage ratio improved to 5.72, indicating that the company's earnings before interest and taxes (EBIT) were 5.72 times higher than its interest expenses for that period. This suggests a healthy ability to cover interest payments.
However, in the previous years, the interest coverage ratios were negative, particularly in January 2020 and 2021, indicating that the company's EBIT was insufficient to cover its interest obligations. The ratios of -55.36 in January 2021 and -315.25 in January 2020 suggest a high risk of default on interest payments during those periods.
It is important for investors and stakeholders to monitor Crowdstrike Holdings Inc's interest coverage ratio closely, as sustained negative ratios can indicate financial distress and potential liquidity issues. The recent improvement in the interest coverage ratio is a positive signal but continuous monitoring is essential to ensure financial health and stability.