SolarWinds Corp (SWI)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	758,740	719,367	718,632	716,770	669,103
Property, plant and equipment	US$ in thousands	19,669	26,634	29,722	39,059	38,945
Fixed asset turnover		38.58	27.01	24.18	18.35	17.18

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $758,740K ÷ $19,669K
= 38.58

The fixed asset turnover ratio indicates how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio signifies that the company is generating more sales relative to its investment in fixed assets.

Analyzing SolarWinds Corp's fixed asset turnover over the past five years, we observe a consistent improvement in efficiency in utilizing its fixed assets. The ratio has been consistently increasing from 17.18 in 2019 to 38.58 in 2023. This indicates that the company has been generating more revenue per dollar invested in fixed assets over the years.

The significant increase in fixed asset turnover from 2019 to 2023 suggests that SolarWinds Corp has been effectively managing and utilizing its fixed assets to drive sales growth. This improvement may be attributed to better asset utilization, operational efficiency, or strategic investments in machinery and equipment.

Overall, the trend in SolarWinds Corp's fixed asset turnover ratio reflects positively on the company's operational performance and indicates its ability to generate sales efficiently using its fixed assets.