Crowdstrike Holdings Inc (CRWD)

Interest coverage

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	80,845	148,573	-134,564	-134,792	-86,310
Interest expense	US$ in thousands	26,311	25,756	25,319	25,231	1,559
Interest coverage		3.07	5.77	-5.31	-5.34	-55.36

January 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $80,845K ÷ $26,311K
= 3.07

The interest coverage ratio for Crowdstrike Holdings Inc has exhibited fluctuations over the past five years. The company's interest coverage ratio was consistently negative from January 31, 2021, to January 31, 2023, indicating that it did not generate sufficient earnings to cover its interest expenses during these periods.

However, there seems to have been an improvement in the company's financial position from January 31, 2024, onwards, as the interest coverage ratio turned positive. This suggests that Crowdstrike Holdings Inc began generating higher earnings relative to its interest obligations, with the ratio reaching 5.77 on January 31, 2024, and 3.07 on January 31, 2025.

Overall, the recent positive trend in the interest coverage ratio indicates an enhanced ability to meet interest payments from operating profits. However, continued monitoring of this ratio is recommended to ensure sustainable financial health and to mitigate risks associated with debt servicing in the future.