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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
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

CrowdStrike Holdings Inc., economic profit calculation

US$ in thousands

12 months ended:	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Net operating profit after taxes (NOPAT)¹	690,745)	625,859)	389,934)	245,962)	139,090)
Cost of capital²	14.47%	14.30%	14.38%	14.36%	14.51%
Invested capital³	5,890,276)	4,116,318)	3,240,763)	2,524,874)	669,497)

Economic profit⁴	(161,641)	37,426)	(75,981)	(116,507)	41,932)

Based on: 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), 10-K (reporting date: 2020-01-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 690,745 – 14.47% × 5,890,276 = -161,641

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Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	CrowdStrike Holdings Inc. economic profit increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

CrowdStrike Holdings Inc., NOPAT calculation

US$ in thousands

12 months ended:	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Net income (loss) attributable to CrowdStrike	89,327)	(183,245)	(234,802)	(92,629)	(141,779)
Deferred income tax expense (benefit)¹	(3,387)	1,306)	(13,956)	(1,452)	(681)
Increase (decrease) in allowance for credit losses²	(400)	1,000)	400)	100)	100)
Increase (decrease) in deferred revenue³	698,986)	825,792)	617,426)	340,727)	281,101)
Increase (decrease) in equity equivalents⁴	695,199)	828,098)	603,870)	339,375)	280,520)
Interest expense	25,756)	25,319)	25,231)	1,559)	442)
Interest expense, operating lease liability⁵	2,872)	1,918)	1,901)	2,417)	—)
Adjusted interest expense	28,628)	27,237)	27,132)	3,976)	442)
Tax benefit of interest expense⁶	(6,012)	(5,720)	(5,698)	(835)	(93)
Adjusted interest expense, after taxes⁷	22,616)	21,517)	21,434)	3,141)	349)
Interest income	(148,930)	(52,495)	(3,788)	(4,968)	—)
Investment income, before taxes	(148,930)	(52,495)	(3,788)	(4,968)	—)
Tax expense (benefit) of investment income⁸	31,275)	11,024)	795)	1,043)	—)
Investment income, after taxes⁹	(117,655)	(41,471)	(2,993)	(3,925)	—)
Net income (loss) attributable to noncontrolling interest	1,258)	960)	2,424)	—)	—)
Net operating profit after taxes (NOPAT)	690,745)	625,859)	389,934)	245,962)	139,090)

Based on: 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), 10-K (reporting date: 2020-01-31).

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 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 50,380 × 5.70% = 2,872

⁶ 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 28,628 × 21.00% = 6,012

⁷ Addition of after taxes interest expense to net income (loss) attributable to CrowdStrike.

⁸ 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 148,930 × 21.00% = 31,275

⁹ Elimination of after taxes investment income.

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Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	CrowdStrike Holdings Inc. NOPAT increased from 2022 to 2023 and from 2023 to 2024.

CrowdStrike Holdings Inc., cash operating taxes calculation

US$ in thousands

12 months ended:	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Provision for income taxes	32,232)	22,402)	72,355)	4,760)	1,997)
Less: Deferred income tax expense (benefit)	(3,387)	1,306)	(13,956)	(1,452)	(681)
Add: Tax savings from interest expense	6,012)	5,720)	5,698)	835)	93)
Less: Tax imposed on investment income	31,275)	11,024)	795)	1,043)	—)
Cash operating taxes	10,356)	15,792)	91,213)	6,004)	2,771)

Based on: 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), 10-K (reporting date: 2020-01-31).

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Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	CrowdStrike Holdings Inc. cash operating taxes decreased from 2022 to 2023 and from 2023 to 2024.

CrowdStrike Holdings Inc., invested capital calculation (financing approach)

US$ in thousands

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Long-term debt	742,494)	741,005)	739,517)	738,029)	—)
Operating lease liability¹	50,380)	42,613)	35,199)	40,963)	50,686)
Total reported debt & leases	792,874)	783,618)	774,716)	778,992)	50,686)
Total CrowdStrike Holdings, Inc. stockholders’ equity	2,303,950)	1,463,641)	1,025,764)	870,574)	742,107)
Net deferred tax (assets) liabilities²	(7,226)	(4,453)	(4,727)	(1,240)	(163)
Allowance for credit losses³	2,200)	2,600)	1,600)	1,200)	1,100)
Deferred revenue⁴	3,054,099)	2,355,113)	1,529,321)	911,895)	571,168)
Equity equivalents⁵	3,049,073)	2,353,260)	1,526,194)	911,855)	572,105)
Accumulated other comprehensive (income) loss, net of tax⁶	1,663)	1,019)	1,240)	(2,319)	(1,009)
Non-controlling interest	33,139)	23,793)	11,879)	1,300)	500)
Adjusted total CrowdStrike Holdings, Inc. stockholders’ equity	5,387,825)	3,841,713)	2,565,077)	1,781,410)	1,313,703)
Construction in progress⁷	(190,832)	(259,013)	(99,030)	(35,528)	(47,626)
Short-term investments⁸	(99,591)	(250,000)	—)	—)	(647,266)
Invested capital	5,890,276)	4,116,318)	3,240,763)	2,524,874)	669,497)

Based on: 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), 10-K (reporting date: 2020-01-31).

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.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	CrowdStrike Holdings Inc. invested capital increased from 2022 to 2023 and from 2023 to 2024.

CrowdStrike Holdings Inc., cost of capital calculations

Jan 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	79,739,259)	79,739,259)	÷	80,460,839)	=	0.99	0.99	×	14.58%	=	14.45%
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					14.47%

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 »

Jan 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	28,699,930)	28,699,930)	÷	29,387,943)	=	0.98	0.98	×	14.58%	=	14.24%
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					14.30%

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 »

Jan 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	43,767,432)	43,767,432)	÷	44,511,331)	=	0.98	0.98	×	14.58%	=	14.34%
Senior Notes³	708,700)	708,700)	÷	44,511,331)	=	0.02	0.02	×	3.00% × (1 – 21.00%)	=	0.04%
Operating lease liability⁴	35,199)	35,199)	÷	44,511,331)	=	0.00	0.00	×	5.40% × (1 – 21.00%)	=	0.00%
Total:	44,511,331)					1.00					14.38%

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 »

Jan 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	42,583,498)	42,583,498)	÷	43,384,661)	=	0.98	0.98	×	14.58%	=	14.31%
Senior Notes³	760,200)	760,200)	÷	43,384,661)	=	0.02	0.02	×	3.00% × (1 – 21.00%)	=	0.04%
Operating lease liability⁴	40,963)	40,963)	÷	43,384,661)	=	0.00	0.00	×	5.90% × (1 – 21.00%)	=	0.00%
Total:	43,384,661)					1.00					14.36%

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 »

Jan 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	10,969,810)	10,969,810)	÷	11,020,496)	=	1.00	1.00	×	14.58%	=	14.51%
Senior Notes³	—)	—)	÷	11,020,496)	=	0.00	0.00	×	0.00% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	50,686)	50,686)	÷	11,020,496)	=	0.00	0.00	×	0.00% × (1 – 21.00%)	=	0.00%
Total:	11,020,496)					1.00					14.51%

Based on: 10-K (reporting date: 2020-01-31).

¹ US$ in thousands

² Equity. See details »

³ Senior Notes. See details »

⁴ Operating lease liability. See details »

CrowdStrike Holdings Inc., economic spread ratio calculation, comparison to benchmarks

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Selected Financial Data (US$ in thousands)
Economic profit¹	(161,641)	37,426)	(75,981)	(116,507)	41,932)
Invested capital²	5,890,276)	4,116,318)	3,240,763)	2,524,874)	669,497)
Performance Ratio
Economic spread ratio³	-2.74%	0.91%	-2.34%	-4.61%	6.26%
Benchmarks
Economic Spread Ratio, Competitors⁴
Accenture PLC	—	5.52%	8.37%	10.21%	10.78%
Adobe Inc.	—	4.98%	10.42%	12.83%	5.10%
Autodesk Inc.	-10.95%	1.42%	-3.14%	-3.32%	4.33%
Cadence Design Systems Inc.	—	10.34%	9.73%	9.96%	10.76%
International Business Machines Corp.	—	-1.45%	-9.31%	-4.33%	-4.06%
Intuit Inc.	-4.54%	-6.60%	-5.53%	2.20%	5.54%
Microsoft Corp.	13.07%	16.11%	24.06%	33.07%	31.09%
Oracle Corp.	-0.33%	-1.38%	-1.07%	6.99%	1.31%
Palo Alto Networks Inc.	8.46%	14.47%	6.34%	-2.34%	-3.35%
Salesforce Inc.	-10.23%	-12.50%	-10.08%	-7.78%	-10.82%
ServiceNow Inc.	—	8.72%	4.19%	5.40%	7.02%
Synopsys Inc.	—	-3.98%	2.60%	-3.42%	-3.24%

Based on: 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), 10-K (reporting date: 2020-01-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -161,641 ÷ 5,890,276 = -2.74%

⁴ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	CrowdStrike Holdings Inc. economic spread ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

CrowdStrike Holdings Inc., economic profit margin calculation, comparison to benchmarks

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Selected Financial Data (US$ in thousands)
Economic profit¹	(161,641)	37,426)	(75,981)	(116,507)	41,932)

Revenue	3,055,555)	2,241,236)	1,451,594)	874,438)	481,413)
Add: Increase (decrease) in deferred revenue	698,986)	825,792)	617,426)	340,727)	281,101)
Adjusted revenue	3,754,541)	3,067,028)	2,069,020)	1,215,165)	762,514)
Performance Ratio
Economic profit margin²	-4.31%	1.22%	-3.67%	-9.59%	5.50%
Benchmarks
Economic Profit Margin, Competitors³
Accenture PLC	—	2.84%	4.03%	5.24%	5.48%
Adobe Inc.	—	6.23%	12.14%	15.98%	7.32%
Autodesk Inc.	-15.48%	1.81%	-4.46%	-4.58%	5.72%
Cadence Design Systems Inc.	—	10.31%	9.71%	10.12%	10.84%
International Business Machines Corp.	—	-2.59%	-16.17%	-8.25%	-7.06%
Intuit Inc.	-6.98%	-10.80%	-10.64%	2.78%	6.24%
Microsoft Corp.	18.28%	18.35%	23.06%	27.45%	23.08%
Oracle Corp.	-0.63%	-2.67%	-1.97%	13.83%	2.98%
Palo Alto Networks Inc.	8.98%	14.37%	7.39%	-3.15%	-5.44%
Salesforce Inc.	-23.66%	-31.84%	-27.98%	-17.84%	-26.62%
ServiceNow Inc.	—	7.02%	3.37%	4.67%	5.73%
Synopsys Inc.	—	-5.62%	3.66%	-5.44%	-5.57%

Based on: 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), 10-K (reporting date: 2020-01-31).

¹ Economic profit. See details »

² 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenue
= 100 × -161,641 ÷ 3,754,541 = -4.31%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	CrowdStrike Holdings Inc. economic profit margin improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin