Crowdstrike Holdings Inc (CRWD)

Financial leverage ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Total assets	US$ in thousands	6,646,520	5,026,540	3,618,380	2,732,530	1,404,910
Total stockholders’ equity	US$ in thousands	2,303,950	1,463,640	1,025,760	870,574	742,107
Financial leverage ratio		2.88	3.43	3.53	3.14	1.89

January 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,646,520K ÷ $2,303,950K
= 2.88

The financial leverage ratio of Crowdstrike Holdings Inc has shown fluctuations over the past five years. The ratio was 2.88 in January 2024, indicating that the company's level of financial leverage has decreased compared to the previous year. This suggests that the company relied less on debt financing in relation to its equity to fund its operations.

In the prior year, the financial leverage ratio was higher at 3.43 in January 2023, demonstrating an increase in leverage compared to January 2024. This may indicate that the company took on more debt relative to equity in the previous year to support its business activities.

Looking further back, the financial leverage ratio was 3.53 in January 2022, the highest among the five years, indicating a higher level of financial leverage. This could suggest that the company was more aggressive in utilizing debt to finance its operations in that period.

In January 2021, the financial leverage ratio decreased to 3.14, showing a slight reduction in leverage compared to the preceding year. This may imply a strategic shift towards a more balanced capital structure.

The financial leverage ratio was the lowest at 1.89 in January 2020, indicating a significant decrease in leverage compared to the subsequent years. This suggests that the company had relatively lower reliance on debt financing and a stronger equity position in that year.

Overall, the fluctuations in Crowdstrike Holdings Inc's financial leverage ratio over the five-year period reflect varying levels of debt usage in relation to equity. Investors and analysts may assess these changes to evaluate the company's risk profile, capital structure decisions, and financial stability.