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.
Peer comparison
Dec 31, 2024