Crowdstrike Holdings Inc (CRWD)
Interest coverage
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 147,283 | -135,526 | -137,171 | -86,310 | -139,340 |
| Interest expense | US$ in thousands | 25,756 | 25,319 | 25,231 | 1,559 | 442 |
| Interest coverage | 5.72 | -5.35 | -5.44 | -55.36 | -315.25 |
January 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $147,283K ÷ $25,756K
= 5.72
Based on the interest coverage ratios of Crowdstrike Holdings Inc over the past five years, the company's ability to cover its interest expenses has shown significant fluctuations.
In January 2024, the interest coverage ratio improved to 5.72, indicating that the company generated sufficient earnings to cover its interest payments. This represents a positive trend compared to the previous years.
However, in January 2023, January 2022, January 2021, and January 2020, the company had negative interest coverage ratios of -5.35, -5.44, -55.36, and -315.25, respectively. These negative ratios suggest that the company's earnings were insufficient to cover its interest expenses during those periods, raising concerns about its financial health and ability to meet its debt obligations.
Overall, Crowdstrike Holdings Inc's interest coverage has shown improvement in the most recent year, but historical data indicates inconsistent performance in this area. Investors and stakeholders should closely monitor the company's ability to generate adequate earnings to cover its interest payments in the future.
Peer comparison
Jan 31, 2024