Crowdstrike Holdings Inc (CRWD)

Debt-to-equity 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	Oct 31, 2019	Jul 31, 2019
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	717,042	728,097
Debt-to-equity ratio		0.29	0.32	0.37	0.40	0.46	0.51	0.56	0.60	0.67	0.72	0.78	0.82	0.87	0.85	0.00	0.00	0.00	0.00	0.00	0.00

April 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $742,866K ÷ $2,535,540K
= 0.29

The debt-to-equity ratio of Crowdstrike Holdings Inc has shown a gradual increasing trend over the past several periods, indicating a higher reliance on debt financing compared to equity. From April 2024 to July 2019, the ratio increased from 0.29 to 0.46, suggesting an increasing level of debt in the company's capital structure.

Notably, there was a significant jump in the debt-to-equity ratio between July 2022 and October 2021, where it climbed from 0.60 to 0.78, and then further to 0.85 in January 2021. These spikes may indicate aggressive borrowing or a decrease in equity relative to debt during these periods.

It is also worth noting the zero values for the debt-to-equity ratio in the earlier periods (October 2020 to July 2020) which could be due to a situation where the company had either no debt or no equity during those specific periods.

Overall, a higher debt-to-equity ratio implies a higher level of financial risk for Crowdstrike Holdings Inc, as the company may be more vulnerable to economic downturns or changes in interest rates. It is essential for stakeholders to monitor this ratio closely to assess the company's leverage and financial stability over time.