Crowdstrike Holdings Inc (CRWD)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 192,991 | 147,280 | 37,765 | -44,725 | -102,424 | -135,496 | -121,730 | -121,587 | -130,199 | -137,133 | -130,175 | -114,434 | -96,909 | -86,233 | -99,106 | -110,241 | -132,072 | -139,410 |
| Interest expense (ttm) | US$ in thousands | 25,880 | 25,756 | 25,686 | 25,517 | 25,408 | 25,319 | 25,269 | 25,338 | 25,299 | 25,231 | 19,978 | 13,768 | 7,646 | 1,559 | 655 | 594 | 584 | 442 |
| Interest coverage | 7.46 | 5.72 | 1.47 | -1.75 | -4.03 | -5.35 | -4.82 | -4.80 | -5.15 | -5.44 | -6.52 | -8.31 | -12.67 | -55.31 | -151.31 | -185.59 | -226.15 | -315.41 |
April 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $192,991K ÷ $25,880K
= 7.46
Interest coverage ratio reflects the company's ability to meet its interest obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Looking at Crowdstrike Holdings Inc's interest coverage over the past few quarters, there has been significant fluctuation. The interest coverage ratio improved from 7.46 in April 2024 to 5.72 in January 2024, showing a relatively strong ability to cover interest expenses. However, the ratio dropped sharply to 1.47 in October 2023, indicating a potential strain on the company's ability to meet interest obligations.
Moreover, in the preceding quarters, the interest coverage ratio was negative, with the lowest point being -315.41 in January 2020. This signifies that the company's operating income was not sufficient to cover its interest expenses during those periods.
Overall, the trend in Crowdstrike Holdings Inc's interest coverage ratio demonstrates volatility and uncertainty in its ability to meet interest payments consistently. Investors and stakeholders may view this as a financial risk factor that warrants further scrutiny and monitoring.
Peer comparison
Apr 30, 2024