Crowdstrike Holdings Inc (CRWD)

Debt-to-equity 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-equity ratio		0.32	0.51	0.72	0.85	0.00

January 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $742,494K ÷ $2,303,950K
= 0.32

The debt-to-equity ratio of Crowdstrike Holdings Inc has shown a decreasing trend over the last five years, indicating a reduction in the company's reliance on debt to finance its operations compared to shareholder equity. In particular, the ratio has decreased from 0.85 in January 2021 to 0.32 in January 2024.

The decline in the debt-to-equity ratio suggests that Crowdstrike Holdings Inc has been managing its debt levels effectively, potentially improving its financial stability and reducing the risk of financial distress. A lower debt-to-equity ratio generally indicates a lower level of financial leverage and may be perceived positively by investors and creditors as it signifies a stronger financial position for the company.

Overall, the decreasing trend in Crowdstrike Holdings Inc's debt-to-equity ratio signals improved financial health and risk management, reflecting positively on the company's ability to meet its financial obligations and sustain its growth.