CrowdStrike Holdings Inc. (NASDAQ:CRWD)

The analysis of the quarterly financial ratios indicates evolving trends in profitability and capital structure over the examined periods.

Return on Assets (ROA)

The ROA started with negative values from early 2020, showing a decreasing magnitude of losses from -10.09% in January 2020 to a minimal negative value of -0.2% by July 2023, indicating a gradual improvement in asset efficiency. A brief positive peak occurred around October 2023 and January 2024, with ROA reaching up to 2.36%, suggesting a short-lived improvement in generating profit from assets. However, following this peak, ROA declines again back into negative territory by April 2024 and further to -3.2% by July 2025, pointing to renewed challenges in asset profitability in the most recent periods.

Financial Leverage

The financial leverage ratio exhibited considerable fluctuations. Initially, it showed a sharp decline from 6.29 in April 2019 to around 1.61 in July 2019, stabilizing in the range of 1.75 to 2.15 through 2020. A notable increase occurred starting early 2021, reaching a peak around 3.53 in January 2022, indicating increased reliance on debt or liabilities relative to equity. After this peak, the leverage ratio gradually decreased to approximately 2.47 by July 2025. This downtrend suggests a reduction in the degree of financial leverage or a strengthening equity base in recent periods.

Return on Equity (ROE)

The ROE mirrored the trends observed in ROA but showed more pronounced negative values through much of the dataset. Beginning at -19.1% in January 2020, the decline intensified, reaching a nadir of -22.89% by April 2022. Subsequent to this, there was an improvement trend with ROE values increasing steadily to positive territory at 5.97% in October 2023. However, the ratio decreased again afterward, falling below zero to -7.91% by July 2025. The oscillations suggest variability in net profitability attributable to shareholders, influenced likely by both operating performance and financial leverage adjustments.

Overall, the period under review highlights a pattern of initial heavy losses and high financial leverage, followed by partial recovery in profitability indicators before deteriorating again in the latest quarters. The interplay between declining financial leverage after early 2022 and fluctuating returns suggests ongoing volatility and challenges in maintaining consistent profitability and efficient capital utilization.

The financial data reveals several notable trends in profitability, efficiency, leverage, and returns over the multiple quarterly periods presented.

Net Profit Margin

The net profit margin shows a pronounced negative position initially, with values around -29.45% in early 2020. Over subsequent quarters, there is a clear upward trajectory, indicating an improving efficiency in managing costs and revenues relative to net profits. The margin approaches and briefly surpasses the zero mark by early 2024, peaking at 4.84%, suggesting periods of profitability. However, this improvement is not sustained, as the margin declines again toward negative values nearing -6.84% by mid-2025. This pattern suggests volatility in profitability with intermittent recovery phases followed by downturns.

Asset Turnover

Asset turnover exhibits a generally increasing trend, starting from 0.34 around early 2020 and progressing steadily towards 0.49 in late 2024. Minor fluctuations occur, but the overall pattern reflects enhanced efficiency in utilizing assets to generate revenue. This increase implies better operational management or growth in sales relative to asset base expansion.

Financial Leverage

Financial leverage initially is very high at 6.29 in April 2019 but quickly drops down to a range between roughly 1.61 and 3.53 across the subsequent quarters. From 2020 onwards, leverage stabilizes mainly between 2.5 and 3.5, with minor fluctuations. There is a decreasing trend in leverage starting early 2023 through mid-2025, indicating a gradual reduction in reliance on debt or obligations relative to equity. The earlier very high leverage figure is an outlier, and the subsequent moderation suggests improved capital structure management.

Return on Equity (ROE)

The return on equity mirrors the net profit margin trend closely, starting with a significant negative ROE around -19.1% in early 2020. ROE deteriorates further in some quarters, reaching lows near -22.89%, indicating sustained losses or poor equity returns. From 2022 onward, a gradual improvement is evident with ROE crossing into positive territory by early 2024, peaking at 5.97%. Similar to net profit margin, ROE declines again after this peak, falling back below zero by mid-2025. This signifies periods of both investment challenges and improved profitability, with an overall volatile but improving equity performance over time.

Overall, the financial indicators suggest that while the company initially faced significant profitability and return challenges, efficiency in asset utilization has improved steadily. The capital structure has been adjusted with decreased leverage post-2019. Profitability metrics such as net profit margin and ROE demonstrate a volatile yet gradually improving trend with intermittent profitability peaks, reflecting a dynamic operational and financial environment.

The analysis of the quarterly financial data reveals several notable trends across different profitability and efficiency metrics over the observed periods.

EBIT Margin

The EBIT margin exhibited a clear improvement trend from significantly negative values in early periods, starting around -28.94% in October 2019, progressively rising to positive figures by late 2023 and early 2024. This suggests a gradual enhancement in operating profitability, moving from substantial losses toward modest operating profits. However, toward the last observed periods, the margin shows some volatility, declining again into negative territory, which might indicate emerging operational challenges or increased costs.

Asset Turnover

The asset turnover ratio shows a steady upward trajectory, increasing from approximately 0.34 in early 2020 to around 0.47 by 2025. This indicates improving efficiency in using assets to generate revenue, suggesting better management or growth in sales relative to asset base. The ratio stabilizes somewhat in later periods, reflecting consistent operational performance in asset utilization.

Financial Leverage

Financial leverage peaked early in the dataset at 6.29 but quickly decreased to a range between roughly 1.6 and 1.9 by mid-2019 and then remained mostly stable, fluctuating moderately around values between 2.0 to 3.5 through 2025. This stability suggests a balanced approach towards debt financing after initial adjustments, implying prudent capital structure management over the recent years.

Return on Equity (ROE)

ROE has been persistently negative or low across many early periods, with some periods of negative returns worse than -20%. There is a slight recovery beginning from late 2022 through early 2024, where ROE transitions to positive single-digit percentages. This improvement aligns with the positive trend in EBIT margin, indicating enhanced profitability contributing to shareholders' returns. However, like EBIT margin, the ROE declines again toward the final periods analyzed, indicating renewed downward pressure on equity returns.

Tax Burden and Interest Burden Ratios

Data for tax burden and interest burden ratios are limited to the most recent quarters. The tax burden ratio shows fluctuations, including negative and positive shifts between roughly -0.98 and 0.8, which may imply inconsistencies in tax expenses or benefits impacting net profitability in recent periods. The interest burden similarly varies but tends toward improvement, moving from 0.32 to around 0.86 before a slight decline, indicating varying levels of interest expense coverage but potentially improved interest expense management.

Overall, the data illustrate a company moving from challenging profitability and operational efficiency scenarios into phases of improvement and stabilization, particularly from 2022 through early 2024. Although some recent declines in profitability measures are evident, asset utilization and financial leverage remain comparatively stable, suggesting solid underlying operational management with some volatility in profitability and tax effects to monitor.

The analysis of the quarterly financial data reveals several noteworthy trends in key profitability and efficiency metrics over the covered periods.

Net Profit Margin

The net profit margin demonstrates a clear improvement trend over time, starting from significant negative values near -29.45% and progressively moving closer to positive territory. Initial quarters show substantial losses, with margins gradually increasing to slightly positive values around 4.84%, before experiencing some volatility and a subsequent decline into negative margins again towards the end of the dataset. This pattern indicates initial operational challenges with eventual stabilization, though recent quarters suggest renewed pressures on profitability.

Asset Turnover

Asset turnover ratios are relatively low but show steady growth over the observed timelines. Commencing near 0.34, the ratio generally increases, reaching approximately 0.49 in several later quarters. This gradual enhancement suggests better utilization of assets in generating revenue, reflecting improving operational efficiency despite the company’s earlier struggles with profitability.

Return on Assets (ROA)

ROA follows a trajectory similar to the net profit margin but on a smaller scale. Negative returns on assets early in the series (around -10.09%) decrease in magnitude over time, approaching and briefly exceeding positive territory. Later quarters reveal some regression back into negative territory, though the overall trend implies an initial recovery in assets' profitability followed by challenges re-emerging. The fluctuations in ROA correspond with those seen in net profit margins, highlighting the close linkage between profitability and asset utilization efficiency.

In summary, the data depict a company that initially experienced substantial losses and lower operational efficiency but made progressive gains in asset utilization and profitability up to a point. However, the recent reversal in net profit margin and ROA suggests the presence of renewed pressures impacting financial performance. Asset turnover remains relatively stable and continues a mild upward trend, indicating ongoing improvements in asset management despite profitability setbacks.

The analysis of the quarterly financial metrics reveals several noteworthy trends related to profitability, efficiency, and financial burden ratios over the observed periods.

EBIT Margin (%)

The EBIT margin shows a clear upward trajectory from deeply negative values around -28.94% to positive territory, peaking at approximately 6.77% during the period ending October 2024. Initially, margins were steadily improving but remained negative, indicating ongoing operational losses. However, starting early 2023, the margin turned positive, demonstrating an improvement in operational efficiency or profitability before slightly declining again toward early 2025.

Asset Turnover (ratio)

Asset turnover exhibits a gradual increase over the periods, moving from 0.34 to stable levels near 0.47–0.49. This indicates improving efficiency in utilizing assets to generate revenue. The ratio's steady growth suggests enhanced operational management or expansion with effective asset utilization as the company scales.

Return on Assets (ROA) (%)

ROA follows a similar trend to EBIT margin, starting from significantly negative values around -10.09%, slowly improving to slightly positive readings near 2.36% in late 2024, before declining again in the subsequent quarters. This pattern reflects initial periods of losses impacting returns, followed by temporary positive returns on asset investment, and a modest downturn later, perhaps due to rising expenses or other operational challenges.

Tax Burden (ratio)

Available data starting late 2023 shows tax burden ratios fluctuating with negative and positive values ranging from about -0.98 to 0.8. The variability in tax burden could suggest changes in tax rate impacts or unusual tax items affecting profitability in certain quarters. This inconsistency should be further examined for non-recurring or extraordinary tax events.

Interest Burden (ratio)

Interest burden ratios, observed from early 2024, remain relatively stable and consistently below 1, ranging from 0.32 to 0.89. This indicates that interest expenses consume a significant but manageable portion of earnings before interest and taxes, with some quarters showing tighter interest cost impacts relative to operating income. Variability might suggest changing debt levels or interest costs.

Overall, the company shows significant improvement in profitability and asset efficiency over the periods, transitioning from operational losses to positive margins and returns. However, recent data indicates some challenges in sustaining these gains, as seen in the slight declines in EBIT margin and ROA near the most recent quarters. Additionally, unstable tax burden ratios and moderate but fluctuating interest burdens highlight areas where financial management and external factors could materially influence future profitability and net returns on assets.

Tax Burden Ratio

The tax burden ratio data is largely unavailable for most periods, with values reported only from January 31, 2024, onward. During this recent timeframe, the ratio exhibits considerable volatility, initially showing a significant negative value of -0.98 at January 31, 2024, improving sharply to positive values ranging between 0.73 and 0.8 in subsequent periods before declining again to -0.37 by July 31, 2025. This erratic pattern suggests fluctuations in tax expenses relative to pre-tax income, potentially indicating unstable tax environments or adjustments in tax management strategies.

Interest Burden Ratio

Interest burden figures are also limited to the last few quarters beginning January 31, 2024. The ratio shows an initial low of 0.32, followed by a sharp improvement to values between 0.83 and 0.89, before dropping to 0.66 by July 31, 2025. These shifts reflect variability in interest expenses relative to operating income, hinting at changes in debt levels or interest cost management over the recent periods.

EBIT Margin

The EBIT margin reveals a clear long-term improvement trend starting at markedly negative values in early 2020 (approximately -29%) and gradually improving over the subsequent years. From April 2020 through mid-2021, the margin steadily rises from around -28% to approximately -10%. The trend continues towards less negative and eventually positive margins by late 2023 to early 2024, peaking around 6.77% (October 2024). However, after this peak, a decline is observed with EBIT margins slipping back near or below zero by mid-2025. Overall, this reflects a transition from substantial operational losses toward profitability, followed by recent margin contraction.

Net Profit Margin

Net profit margin data mirrors the EBIT margin trend closely, beginning with deeply negative values near -29% in early 2020 and improving steadily through 2022. Negative margins persist but lessen in magnitude to about -3.54% by mid-2023 and further approach near breakeven levels or slight profitability in late 2023 through early 2024, peaking at around 4.84% in October 2024. Subsequently, net margins decrease again, falling back into negative territory by mid-2025. This pattern indicates an overall transition from heavy net losses toward profitability before experiencing recent setbacks.

General Observations

The financial ratios reflect a company undergoing significant operational improvement over a multi-year period, moving from high losses to positive earnings margins by late 2023 and early 2024. However, this progress appears to have stalled and partially reversed in the most recent quarters, as margins contract and some ratios show increased instability. The limited availability of tax and interest burden data constrains full interpretation but the observed fluctuations in these ratios may point to challenges in financial management or external pressures affecting profitability sustainability.