Crowdstrike Holdings Inc (CRWD)

Debt-to-capital ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
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
Debt-to-capital ratio		0.24	0.34	0.42	0.46	0.00

January 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $742,494K ÷ ($742,494K + $2,303,950K)
= 0.24

The debt-to-capital ratio of Crowdstrike Holdings Inc has displayed a decreasing trend over the past five years, indicating an improvement in the company's capital structure. As of January 31, 2024, the ratio stood at 0.24, down from 0.34 in the previous year and significantly lower than the 0.46 recorded in January 31, 2021. Notably, in January 31, 2020, the company had a debt-to-capital ratio of 0.00, suggesting that there was no debt in the capital structure at that time.

This downward trend in the debt-to-capital ratio signifies that Crowdstrike Holdings Inc has been reducing its reliance on debt financing relative to its equity, which can be viewed positively by investors and creditors. It suggests that the company may be managing its debt levels effectively and improving its financial stability over time. However, it's essential to consider the reasons behind this trend, such as changes in capital structure, debt management strategies, or business operations, to gain a more comprehensive understanding of the company's financial health.