Crowdstrike Holdings Inc (CRWD)

Financial leverage 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
Total assets	US$ in thousands	6,841,980	6,646,520	5,831,060	5,520,460	5,137,860	5,026,540	4,469,440	4,154,240	3,835,840	3,618,380	3,299,620	3,136,040	2,881,170	2,732,530	1,749,510	1,616,950	1,519,400	1,404,910
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
Financial leverage ratio		2.70	2.88	2.87	3.00	3.20	3.43	3.40	3.39	3.48	3.53	3.48	3.47	3.39	3.14	2.15	2.04	2.02	1.89

April 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,841,980K ÷ $2,535,540K
= 2.70

The financial leverage ratio of Crowdstrike Holdings Inc has shown a fluctuating trend over the periods indicated. The ratio indicates the company's level of debt relative to its equity, with higher ratios suggesting higher financial risk due to increased reliance on debt financing.

The ratio has generally been on an upward trend from 2019 to 2020, reaching a peak of 3.53 in Jan 2022 before slightly declining in recent periods. This indicates that the company has been utilizing more debt to finance its operations compared to equity. It is worth noting that the ratio has significantly increased from 2019 to 2022, reflecting a shift towards higher indebtedness.

Although the ratio has decreased in recent periods, it still remains relatively high, indicating that Crowdstrike Holdings Inc continues to have a substantial amount of debt in its capital structure. Investors and analysts may want to closely monitor this ratio to assess the company's ability to manage and service its debt obligations, as a high financial leverage ratio can increase the company's financial vulnerability, especially during economic downturns or unforeseen challenges.