CrowdStrike Holdings Inc. (NASDAQ:CRWD)

The analysis of the annual financial ratios over the reported periods reveals distinct patterns and trends.

Net Fixed Asset Turnover

This ratio exhibits an initial strong increase from 3.54 in 2020 to a peak of 5.57 in 2022, indicating improved efficiency in using fixed assets to generate revenue. It then declines to 4.55 in 2023 before slightly recovering to 4.93 in 2024 and 5.01 in 2025. The overall trend suggests increased asset utilization with some volatility after 2022.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

When incorporating operating leases and right-of-use assets, the turnover shows a similar upward trend but with lower values compared to the standard net fixed asset turnover. It rises from 3.54 in 2020 to 4.97 in 2022, followed by a decline to 4.21 in 2023 and gradual increases to 4.57 in 2024 and 4.76 in 2025. This pattern reflects the impact of lease obligations on asset efficiency metrics but maintains the general direction observed in fixed assets alone.

Total Asset Turnover

This ratio remains relatively low throughout the periods, starting at 0.34 in 2020, dipping slightly to 0.32 in 2021, then improving steadily to 0.4 in 2022 and further increasing to 0.45 in 2023 and 0.46 in 2024, with a slight decrease to 0.45 in 2025. The gradual improvement indicates a more efficient overall use of assets to generate sales, though the ratio levels off towards the end of the period.

Equity Turnover

The equity turnover ratio demonstrates a marked upward trajectory from 0.65 in 2020 to a peak of 1.53 in 2023, suggesting enhanced effectiveness in utilizing shareholder equity to generate revenue. After 2023, the ratio declines to 1.33 in 2024 and further to 1.21 in 2025, indicating some reduction in equity efficiency more recently.

In summary, the company shows significant improvements in asset and equity utilization up to around 2022-2023, with indications of stabilization or reversal in some ratios thereafter. The net fixed asset turnover and equity turnover ratios reflect the most pronounced growth followed by moderate declines, while total asset turnover shows consistent but moderate improvement across the entire timeline. Incorporating lease assets into fixed asset calculations tempers turnover values but confirms similar trends.

Revenue Trends

There is a consistent and substantial increase in revenue over the analyzed periods. Starting from approximately $481 million in the year ending January 31, 2020, revenue nearly doubled to $874 million by January 31, 2021, and more than tripled to over $3.95 billion by January 31, 2025. The growth trajectory is steady with no indication of decline or plateau, reflecting strong sales expansion throughout the period.

Property and Equipment, Net

The value of net property and equipment has also shown a significant upward trend. Beginning at around $136 million in 2020, the figure steadily increased each year, reaching approximately $789 million by 2025. This sizable accumulation of fixed assets indicates notable capital investment, possibly to support growth in operations or infrastructure expansion.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio exhibits variability but remains generally stable. Starting at 3.54 in 2020, it increased to a peak of 5.57 in 2022, indicating efficient asset utilization during this year. However, it dropped to 4.55 in 2023 before recovering slightly to 5.01 by 2025. These fluctuations suggest changing dynamics in asset efficiency, but overall, the ratio maintains a healthy level around 4.5 to 5.5, suggesting that fixed assets continue to generate substantial revenue.

Summary Insights

The data reveals robust revenue growth supported by significant investment in fixed assets. The increase in net property and equipment alongside rising revenue suggests strategic expansion. The relatively stable net fixed asset turnover ratio indicates that asset utilization efficiency, while variable, remains strong. This balance between asset growth and revenue generation highlights effective capital management within the periods assessed.

The financial data reveals a substantial and continuous growth in revenue over the observed periods. Starting from approximately $481 million in 2020, revenue exhibits a strong upward trajectory, reaching nearly $3.95 billion by 2025. This indicates a robust increase in the company's sales or service income, reflecting successful business expansion and market penetration.

Simultaneously, the net value of property and equipment, including operating lease right-of-use assets, increased significantly. From about $136 million in 2020, these assets more than sextupled to approximately $831 million in 2025. This growth suggests substantial investment in fixed assets, potentially to support the expanding operational and production capacity necessary to accommodate the rising revenue.

The net fixed asset turnover ratio, which measures efficiency in generating revenue from fixed assets, shows a fluctuating but generally stable pattern. Beginning at 3.54 in 2020, it increased to a peak of 4.97 in 2022, indicating improving utilization of assets to generate revenue up to that point. After a dip to 4.21 in 2023, it recovered to 4.76 by 2025. Despite large increases in asset base, the ratio remains relatively high, suggesting that investments in property and equipment have been efficiently employed to support revenue growth.

Revenue

Strong upward trend from $481 million in 2020 to nearly $3.95 billion in 2025, indicating rapid business growth.

Property and Equipment, Net

Marked increase from $136 million in 2020 to $831 million in 2025, reflecting significant capital expenditures to support operations.

Net Fixed Asset Turnover Ratio

Generally stable with an upward trend early on, peaking in 2022 before a slight decline and recovery, demonstrating effective asset utilization despite asset growth.

The total asset turnover ratio exhibits an increasing trend over the observed period, followed by a stabilization. Initially, the ratio decreased from 0.34 in 2020 to 0.32 in 2021. However, a subsequent increase is noted, reaching 0.40 in 2022 and continuing to 0.45 in 2023. The ratio remained relatively stable in 2024 at 0.46, and a slight decrease to 0.45 is observed in 2025.

Total Asset Turnover Trend

The initial decline in 2021 may indicate a slower rate of revenue generation relative to the company’s asset base. The subsequent increases from 2022 through 2023 suggest improved efficiency in utilizing assets to generate revenue. The stabilization in 2024 and slight decrease in 2025 could indicate that the company is reaching a point of diminishing returns in terms of asset utilization, or that asset growth is outpacing revenue growth.

Revenue demonstrates consistent growth throughout the period, increasing from 481,413 thousand US dollars in 2020 to 3,953,624 thousand US dollars in 2025. Total assets also increased consistently, rising from 1,404,906 thousand US dollars in 2020 to 8,701,578 thousand US dollars in 2025. The observed trend in the total asset turnover ratio suggests that, despite the increasing asset base, the company has generally become more effective at generating revenue from those assets, particularly between 2021 and 2023.

Relationship to Revenue and Asset Growth

The concurrent growth in both revenue and total assets is a key consideration. While the asset turnover ratio improved significantly, the substantial increase in total assets suggests that the company is actively investing in its growth. The stabilization of the ratio in recent years warrants further investigation to determine if the level of asset investment is optimally aligned with revenue generation.

The ratio’s movement indicates a dynamic relationship between asset deployment and revenue production. The observed pattern suggests a period of improving operational efficiency, followed by a period of consolidation, potentially reflecting strategic shifts in investment or market conditions.

The financial data reveals significant growth and evolving efficiency over the examined period.

Revenue

The revenue demonstrates a strong upward trend, increasing substantially year-over-year. Starting from approximately 481 million US dollars in early 2020, the revenue nearly doubled by 2021, reaching around 874 million US dollars. This growth trajectory continues sharply, surpassing 1.45 billion in 2022 and further escalating to over 3.95 billion US dollars projected by early 2025. The pattern suggests accelerating business expansion and successful market penetration or product adoption.

Total Stockholders’ Equity

The stockholders’ equity also exhibits consistent growth during the period, increasing from roughly 742 million US dollars at the beginning of 2020 to nearly 3.28 billion by the start of 2025. This growth in equity aligns with the revenue increase, implying retained earnings accumulation, capital infusions, or valuation growth, which contribute positively to the company’s financial strength and capital base.

Equity Turnover

The equity turnover ratio shows improvement early in the timeframe, rising from 0.65 in 2020 to a peak of 1.53 in 2023, indicating enhanced efficiency in utilizing equity to generate revenue. However, a slight decline is observed thereafter, decreasing to 1.33 in 2024 and further to 1.21 in the projected 2025 period. Despite the reduction, the equity turnover remains significantly higher than the initial level, reflecting a generally efficient use of equity capital across the years, albeit with some moderation in recent periods.