Crowdstrike Holdings Inc (CRWD)

Interest coverage

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	27,339	98,237	144,938	100,316	104,675	36,310	-45,867	-102,598	-134,564	-119,153	-119,300	-128,884	-134,792	-128,058	-112,371	-94,846	-86,310	-99,119	-110,201	-132,032
Interest expense (ttm)	US$ in thousands	26,311	26,069	20,029	19,924	19,800	19,730	25,517	25,408	24,773	24,723	24,792	24,753	24,684	19,431	13,221	7,099	1,559	655	594	584
Interest coverage		1.04	3.77	7.24	5.03	5.29	1.84	-1.80	-4.04	-5.43	-4.82	-4.81	-5.21	-5.46	-6.59	-8.50	-13.36	-55.36	-151.33	-185.52	-226.08

January 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $27,339K ÷ $26,311K
= 1.04

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Crowdstrike Holdings Inc had a consistently negative interest coverage ratio from April 2020 to July 2022, indicating that the company struggled to generate enough earnings to cover its interest expenses during that period. However, from October 2022 onwards, the company's interest coverage ratio started to improve, reaching positive territory by January 2024. This positive trend suggests that Crowdstrike Holdings Inc's income was adequate to cover its interest payments, indicating a stronger financial position and reduced risk of default on debt obligations. It is important to note that a positive interest coverage ratio is generally considered healthier for a company, as it shows the company's ability to meet its financial obligations.