Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
Economic Profit
CrowdStrike Holdings Inc., economic profit calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2026 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 720,234 – 20.06% × 9,783,940 = -1,242,087
The financial trajectory over the analyzed period reveals a widening disparity between operational earnings and the cost of the capital employed. Although there is a general upward trend in nominal operational profitability, the aggressive expansion of the invested capital base has resulted in an accelerating decline in economic profit.
- Net Operating Profit After Taxes (NOPAT)
- Operational profitability grew from 245,962 thousand US$ in January 2021 to 720,234 thousand US$ by January 2026. This growth was interrupted in January 2025, which saw a temporary decline to 516,439 thousand US$ before returning to an upward trajectory.
- Invested Capital and Cost of Capital
- The invested capital base has expanded consistently and rapidly, rising from 2,524,874 thousand US$ in 2021 to 9,783,940 thousand US$ in 2026. Concurrently, the cost of capital has remained nearly constant, maintaining a stable range between 19.77% and 20.06% throughout the period.
- Economic Profit Trends
- Economic profit has remained negative for the entire duration of the analysis, indicating that the return on invested capital is insufficient to cover the cost of capital. The economic loss widened significantly, moving from -255,432 thousand US$ in January 2021 to -1,242,087 thousand US$ by January 2026.
- Capital Efficiency and Value Creation
- The observed patterns indicate a trend of economic value destruction. The rate of investment in the capital base has significantly outpaced the growth of NOPAT. Given the stable cost of capital at approximately 20%, the increasing capital charge has overwhelmed the growth in operating profits, leading to a deepening economic deficit.
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Net Operating Profit after Taxes (NOPAT)
CrowdStrike Holdings Inc., NOPAT calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowance for credit losses.
3 Addition of increase (decrease) in deferred revenue.
4 Addition of increase (decrease) in equity equivalents to net income (loss) attributable to CrowdStrike.
5 2026 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 74,606 × 5.30% = 3,954
6 2026 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 31,975 × 21.00% = 6,715
7 Addition of after taxes interest expense to net income (loss) attributable to CrowdStrike.
8 2026 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 194,969 × 21.00% = 40,943
9 Elimination of after taxes investment income.
Net operating profit after taxes (NOPAT) demonstrates a clear upward trajectory over the observed period, although with some fluctuation. While net income attributable to CrowdStrike exhibits volatility, NOPAT consistently shows positive values and growth, suggesting operational profitability despite variations in reported net income.
- Overall Trend
- NOPAT increased significantly from US$245,962 thousand in 2021 to US$690,745 thousand in 2024. A slight decrease is then observed in 2025, falling to US$516,439 thousand, before recovering to US$720,234 thousand in 2026. This indicates a generally positive trend in core operational profitability, with a temporary dip in 2025.
- Growth Rates
- The largest year-over-year increase in NOPAT occurred between 2022 and 2023, with a growth of approximately 60.7%. The increase from 2023 to 2024 was approximately 10.4%. The decline in 2025 represents a decrease of approximately 25.2%, followed by a recovery of approximately 39.8% in 2026.
- Relationship to Net Income
- A notable divergence exists between NOPAT and net income. While NOPAT consistently remains positive, net income fluctuates between losses and a profit. This suggests that non-operating factors, such as financing costs or one-time events, significantly impact reported net income, while the core business operations, as reflected in NOPAT, remain fundamentally profitable. The negative net income figures in 2021, 2022, 2023, and 2025 are offset by the consistently positive NOPAT values.
- Long-Term Outlook (Based on Available Information)
- The recovery in NOPAT in 2026 suggests a resilience in the underlying business model. The continued growth in NOPAT, despite fluctuations in net income, indicates a strong capacity to generate profit from core operations. Further investigation into the factors driving the 2025 dip and the subsequent recovery would be beneficial.
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Cash Operating Taxes
CrowdStrike Holdings Inc., cash operating taxes calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
The provision for income taxes and cash operating taxes exhibit fluctuating patterns over the observed period. Significant volatility is present in both metrics, suggesting potential influences from changes in accounting practices, tax regulations, or the company’s financial performance.
- Provision for Income Taxes
- The provision for income taxes increased substantially from US$4.76 million in 2021 to US$72.36 million in 2022. This was followed by a considerable decrease to US$22.40 million in 2023. A subsequent rise to US$32.23 million occurred in 2024, before increasing again to US$71.13 million in 2025. The most recent year, 2026, shows a decrease to US$34.18 million. This pattern indicates a lack of consistent growth and suggests sensitivity to underlying financial factors.
- Cash Operating Taxes
- Cash operating taxes mirrored the volatility seen in the provision for income taxes. An increase from US$6.00 million in 2021 to US$91.21 million in 2022 was observed, followed by a decline to US$15.79 million in 2023. Further reduction occurred in 2024, reaching US$10.36 million. A notable increase to US$45.88 million occurred in 2025, followed by a decrease to US$14.74 million in 2026. The fluctuations in cash operating taxes may not directly correlate with the provision for income taxes due to timing differences in tax payments and receipts.
- Relationship between Provision and Cash Taxes
- In 2021, cash operating taxes exceeded the provision for income taxes. However, from 2022 through 2025, the provision for income taxes generally exceeded cash operating taxes. In 2026, the provision for income taxes was higher than cash operating taxes. These differences could be attributed to deferred tax assets or liabilities, tax credits, or changes in tax laws impacting the timing of tax payments.
The substantial variations in both the provision for income taxes and cash operating taxes warrant further investigation to understand the underlying drivers. A detailed analysis of the company’s tax strategy, accounting policies, and financial performance is recommended to provide a comprehensive explanation for these trends.
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Invested Capital
CrowdStrike Holdings Inc., invested capital calculation (financing approach)
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of deferred revenue.
5 Addition of equity equivalents to total CrowdStrike Holdings, Inc. stockholders’ equity.
6 Removal of accumulated other comprehensive income.
7 Subtraction of construction in progress.
8 Subtraction of short-term investments.
The reported invested capital demonstrates a consistent upward trajectory over the observed period. Simultaneously, both total reported debt & leases and total stockholders’ equity have increased, contributing to the growth in invested capital.
- Invested Capital Trend
- Invested capital increased from US$2,524,874 thousand in January 2021 to US$9,783,940 thousand in January 2026. This represents a substantial cumulative increase, indicating growing resource allocation within the organization. The rate of increase appears to accelerate over time, with larger absolute increases observed in later years.
- Debt & Leases
- Total reported debt & leases exhibited a generally increasing trend, moving from US$778,992 thousand in January 2021 to US$820,077 thousand in January 2026. While generally upward, there is a slight decrease observed between January 2021 and January 2022, followed by a period of growth. The growth rate of debt appears to be slower than the growth rate of equity and invested capital overall.
- Stockholders’ Equity
- Total stockholders’ equity experienced significant growth, rising from US$870,574 thousand in January 2021 to US$4,428,390 thousand in January 2026. This represents a more than five-fold increase over the period. The rate of growth in stockholders’ equity is notably higher than that of debt, suggesting an increasing reliance on equity financing.
The consistent growth in invested capital, coupled with the proportionally larger increase in stockholders’ equity relative to debt, suggests a strengthening financial position. The organization appears to be effectively utilizing both debt and equity to fund its operations and expansion, with a growing emphasis on equity financing in recent years.
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Cost of Capital
CrowdStrike Holdings Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 108,080,181) | 108,080,181) | ÷ | 108,872,987) | = | 0.99 | 0.99 | × | 20.19% | = | 20.04% | ||
| Senior Notes3 | 718,200) | 718,200) | ÷ | 108,872,987) | = | 0.01 | 0.01 | × | 3.00% × (1 – 21.00%) | = | 0.02% | ||
| Operating lease liability4 | 74,606) | 74,606) | ÷ | 108,872,987) | = | 0.00 | 0.00 | × | 5.30% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 108,872,987) | 1.00 | 20.06% | ||||||||||
Based on: 10-K (reporting date: 2026-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 76,563,140) | 76,563,140) | ÷ | 77,296,458) | = | 0.99 | 0.99 | × | 20.19% | = | 19.99% | ||
| Senior Notes3 | 688,400) | 688,400) | ÷ | 77,296,458) | = | 0.01 | 0.01 | × | 3.00% × (1 – 21.00%) | = | 0.02% | ||
| Operating lease liability4 | 44,918) | 44,918) | ÷ | 77,296,458) | = | 0.00 | 0.00 | × | 5.50% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 77,296,458) | 1.00 | 20.02% | ||||||||||
Based on: 10-K (reporting date: 2025-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 79,739,259) | 79,739,259) | ÷ | 80,460,839) | = | 0.99 | 0.99 | × | 20.19% | = | 20.00% | ||
| Senior Notes3 | 671,200) | 671,200) | ÷ | 80,460,839) | = | 0.01 | 0.01 | × | 3.00% × (1 – 21.00%) | = | 0.02% | ||
| Operating lease liability4 | 50,380) | 50,380) | ÷ | 80,460,839) | = | 0.00 | 0.00 | × | 5.70% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 80,460,839) | 1.00 | 20.03% | ||||||||||
Based on: 10-K (reporting date: 2024-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 28,699,930) | 28,699,930) | ÷ | 29,387,943) | = | 0.98 | 0.98 | × | 20.19% | = | 19.71% | ||
| Senior Notes3 | 645,400) | 645,400) | ÷ | 29,387,943) | = | 0.02 | 0.02 | × | 3.00% × (1 – 21.00%) | = | 0.05% | ||
| Operating lease liability4 | 42,613) | 42,613) | ÷ | 29,387,943) | = | 0.00 | 0.00 | × | 4.50% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 29,387,943) | 1.00 | 19.77% | ||||||||||
Based on: 10-K (reporting date: 2023-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 43,772,048) | 43,772,048) | ÷ | 44,515,947) | = | 0.98 | 0.98 | × | 20.19% | = | 19.85% | ||
| Senior Notes3 | 708,700) | 708,700) | ÷ | 44,515,947) | = | 0.02 | 0.02 | × | 3.00% × (1 – 21.00%) | = | 0.04% | ||
| Operating lease liability4 | 35,199) | 35,199) | ÷ | 44,515,947) | = | 0.00 | 0.00 | × | 5.40% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 44,515,947) | 1.00 | 19.89% | ||||||||||
Based on: 10-K (reporting date: 2022-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 42,581,259) | 42,581,259) | ÷ | 43,382,422) | = | 0.98 | 0.98 | × | 20.19% | = | 19.81% | ||
| Senior Notes3 | 760,200) | 760,200) | ÷ | 43,382,422) | = | 0.02 | 0.02 | × | 3.00% × (1 – 21.00%) | = | 0.04% | ||
| Operating lease liability4 | 40,963) | 40,963) | ÷ | 43,382,422) | = | 0.00 | 0.00 | × | 5.90% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 43,382,422) | 1.00 | 19.86% | ||||||||||
Based on: 10-K (reporting date: 2021-01-31).
1 US$ in thousands
2 Equity. See details »
3 Senior Notes. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
CrowdStrike Holdings Inc., economic spread ratio calculation, comparison to benchmarks
| Jan 31, 2026 | Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | (1,242,087) | (1,007,711) | (488,877) | (187,924) | (254,616) | (255,432) | |
| Invested capital2 | 9,783,940) | 7,614,215) | 5,890,276) | 4,116,318) | 3,240,763) | 2,524,874) | |
| Performance Ratio | |||||||
| Economic spread ratio3 | -12.70% | -13.23% | -8.30% | -4.57% | -7.86% | -10.12% | |
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Accenture PLC | -0.31% | 1.52% | 1.19% | 1.97% | 4.84% | 6.66% | |
| Adobe Inc. | — | 13.20% | 0.92% | 1.09% | 6.58% | 8.97% | |
| AppLovin Corp. | — | 28.93% | 1.21% | -20.00% | -26.37% | -29.58% | |
| Cadence Design Systems Inc. | — | -1.28% | -2.87% | 7.18% | 6.59% | 6.80% | |
| Datadog Inc. | — | -8.74% | -9.43% | -5.95% | -11.70% | -3.88% | |
| International Business Machines Corp. | — | -0.82% | -7.67% | -3.61% | -11.36% | -6.21% | |
| Intuit Inc. | 7.83% | -2.91% | -6.58% | -8.63% | -7.52% | 0.11% | |
| Microsoft Corp. | 8.88% | 5.63% | 7.51% | 10.56% | 18.54% | 27.58% | |
| Oracle Corp. | -3.77% | -7.90% | -7.76% | -8.56% | -7.56% | 0.65% | |
| Palantir Technologies Inc. | — | 41.88% | -12.04% | -8.76% | -32.50% | -39.96% | |
| Palo Alto Networks Inc. | -12.79% | -3.82% | 5.37% | 11.50% | 3.53% | -5.17% | |
| Salesforce Inc. | -6.95% | -12.37% | -14.18% | -17.63% | -14.50% | -12.36% | |
| ServiceNow Inc. | — | 2.66% | 5.94% | 5.23% | 0.73% | 1.94% | |
| Synopsys Inc. | — | -12.39% | -8.14% | -7.44% | -0.84% | -6.86% | |
| Workday Inc. | -9.43% | -11.52% | -12.93% | -19.15% | -13.98% | -19.23% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 Economic profit. See details »
2 Invested capital. See details »
3 2026 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -1,242,087 ÷ 9,783,940 = -12.70%
4 Click competitor name to see calculations.
The financial trajectory over the observed period indicates a widening gap between the cost of capital and the actual returns generated, resulting in a consistent failure to create economic value. While there was a brief period of improvement in economic efficiency between 2021 and 2023, the subsequent years show a significant acceleration in economic losses alongside a rapid expansion of the capital base.
- Economic Profit
- Economic profit remained negative throughout the entire period, indicating that the entity did not generate returns sufficient to cover its cost of capital. After a marginal improvement from 2021 to 2023, where losses narrowed from -255.4 million to -187.9 million, a sharp reversal occurred. Economic losses expanded drastically from 2024 onwards, reaching -1.24 billion by January 31, 2026.
- Invested Capital
- There is a consistent and aggressive upward trend in invested capital. The capital base grew from 2.52 billion in 2021 to 9.78 billion by 2026. This steady increase suggests a strategy of significant investment and scaling, although these investments have not yet translated into positive economic profit.
- Economic Spread Ratio
- The economic spread ratio, which measures the difference between the return on invested capital and the cost of capital, remained negative for all periods. The ratio improved from -10.12% in 2021 to a peak of -4.57% in 2023, suggesting an increase in capital efficiency. However, this trend reversed sharply in 2024, with the ratio deteriorating to -13.23% in 2025 and ending at -12.70% in 2026. This deterioration indicates that the rate of economic loss is growing faster than the rate of capital investment.
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Economic Profit Margin
CrowdStrike Holdings Inc., economic profit margin calculation, comparison to benchmarks
| Jan 31, 2026 | Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | (1,242,087) | (1,007,711) | (488,877) | (187,924) | (254,616) | (255,432) | |
| Revenue | 4,812,005) | 3,953,624) | 3,055,555) | 2,241,236) | 1,451,594) | 874,438) | |
| Add: Increase (decrease) in deferred revenue | 1,024,761) | 674,578) | 698,986) | 825,792) | 617,426) | 340,727) | |
| Adjusted revenue | 5,836,766) | 4,628,202) | 3,754,541) | 3,067,028) | 2,069,020) | 1,215,165) | |
| Performance Ratio | |||||||
| Economic profit margin2 | -21.28% | -21.77% | -13.02% | -6.13% | -12.31% | -21.02% | |
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Accenture PLC | -0.22% | 0.97% | 0.67% | 1.01% | 2.33% | 3.42% | |
| Adobe Inc. | — | 11.94% | 1.04% | 1.37% | 7.67% | 11.17% | |
| AppLovin Corp. | — | 29.73% | 1.17% | -27.38% | -49.38% | -59.23% | |
| Cadence Design Systems Inc. | — | -1.92% | -4.40% | 7.15% | 6.57% | 6.91% | |
| Datadog Inc. | — | -5.18% | -8.56% | -3.72% | -8.10% | -3.08% | |
| International Business Machines Corp. | — | -1.46% | -13.55% | -6.43% | -19.67% | -11.82% | |
| Intuit Inc. | 9.56% | -3.75% | -10.11% | -14.13% | -14.48% | 0.14% | |
| Microsoft Corp. | 14.91% | 8.39% | 10.50% | 12.02% | 17.77% | 22.89% | |
| Oracle Corp. | -9.25% | -15.82% | -14.76% | -16.57% | -13.87% | 1.29% | |
| Palantir Technologies Inc. | — | 21.69% | -10.44% | -4.70% | -54.53% | -65.82% | |
| Palo Alto Networks Inc. | -35.54% | -4.52% | 5.70% | 11.42% | 4.11% | -6.95% | |
| Salesforce Inc. | -14.89% | -26.71% | -32.78% | -44.58% | -40.27% | -28.34% | |
| ServiceNow Inc. | — | 2.94% | 4.88% | 4.21% | 0.58% | 1.68% | |
| Synopsys Inc. | — | -72.30% | -13.64% | -10.49% | -1.18% | -10.92% | |
| Workday Inc. | -11.34% | -12.24% | -14.39% | -23.49% | -18.95% | -25.09% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 Economic profit. See details »
2 2026 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenue
= 100 × -1,242,087 ÷ 5,836,766 = -21.28%
3 Click competitor name to see calculations.
An analysis of the financial performance from 2021 to 2026 reveals a significant divergence between revenue growth and economic value creation. While adjusted revenue demonstrates a consistent and aggressive upward trajectory, economic profit has deteriorated substantially, particularly after 2023, resulting in an overall expansion of economic losses.
- Revenue Growth Trajectory
- Adjusted revenue exhibits uninterrupted growth over the six-year period, increasing from 1,215,165 thousand US dollars in 2021 to 5,836,766 thousand US dollars by 2026. This represents a sustained expansion of the top line, indicating strong market penetration and scaling capabilities.
- Economic Profit Trends
- Economic profit remained relatively stable between 2021 and 2022, followed by a marginal improvement in 2023 where losses narrowed to 187,924 thousand US dollars. However, a sharp reversal occurred starting in 2024, with economic losses accelerating rapidly to 488,877 thousand US dollars, and further deepening to 1,242,087 thousand US dollars by 2026. The magnitude of the economic loss increased more than sixfold from its 2023 peak to the 2026 projection.
- Economic Profit Margin Volatility
- The economic profit margin initially showed a positive trend, improving from -21.02% in 2021 to a peak of -6.13% in 2023. This indicated that revenue growth was initially offsetting the cost of capital. This trend reversed sharply in 2024, with the margin dropping to -13.02%, and continuing to decline to -21.77% in 2025. By 2026, the margin stabilized at -21.28%, effectively returning to the efficiency levels observed at the start of the period despite the significantly larger scale of operations.
The correlation between rising revenue and deepening economic losses suggests that the costs associated with generating additional revenue, combined with the cost of capital employed, are outpacing operational gains. The inability to maintain the margin improvements achieved in 2023 indicates an escalation in the cost of growth or a significant increase in capital charges that exceeds the incremental returns from expanded operations.
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