SolarWinds Corp (SWI)

Fixed asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 796,895 758,740 719,367 718,632 716,770
Property, plant and equipment US$ in thousands 15,978 19,669 26,634 29,722 39,059
Fixed asset turnover 49.87 38.58 27.01 24.18 18.35

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $796,895K ÷ $15,978K
= 49.87

The fixed asset turnover ratio measures the efficiency of SolarWinds Corp in generating revenue from its investment in fixed assets. For the years provided, the trend in the fixed asset turnover ratio shows a consistent improvement, indicating that the company's ability to generate sales from its investment in fixed assets has been steadily increasing over time.

In 2020, the fixed asset turnover was 18.35 times, meaning that the company generated $18.35 in revenue for every dollar invested in fixed assets. This ratio improved to 24.18 in 2021, 27.01 in 2022, 38.58 in 2023, and 49.87 in 2024.

The significant increase in the fixed asset turnover ratio suggests that SolarWinds Corp has been effectively utilizing its fixed assets to drive revenue growth. This improvement may be attributed to various factors such as operational efficiency, increased productivity, and effective asset management strategies. Overall, the rising trend in the fixed asset turnover ratio reflects positively on the company's operational performance and efficiency in utilizing its fixed assets to generate sales.