Crowdstrike Holdings Inc (CRWD)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.23	0.24	0.27	0.29	0.32	0.34	0.36	0.38	0.40	0.42	0.44	0.45	0.47	0.46	0.00	0.00	0.00	0.00

April 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $742,866K ÷ ($742,866K + $2,535,540K)
= 0.23

Crowdstrike Holdings Inc's debt-to-capital ratio has been showing a generally increasing trend over the past few periods, starting at 0.23 in April 2024 and rising to 0.47 by January 2021. This suggests that the company's reliance on debt in its capital structure has been growing steadily over time.

The higher the ratio, the higher the financial risk associated with the company due to its higher level of debt obligations relative to its total capital. A higher debt-to-capital ratio can indicate potential concerns regarding the company's ability to meet its debt obligations, especially in challenging economic conditions.

It is worth noting that from April 2020 to January 2021, the ratio suddenly dropped to 0, indicating a period where the company may have had no debt or significantly reduced its debt relative to its capital. This could be due to various reasons such as debt repayment, capital restructuring, or other strategic decisions by the company.

In conclusion, the increasing trend in Crowdstrike Holdings Inc's debt-to-capital ratio highlights its growing reliance on debt financing, which may indicate an increase in financial risk and require careful monitoring by investors and stakeholders.