SolarWinds Corp (SWI)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	83,307	87,005	95,983	227,016	211,443
Payables	US$ in thousands	7,448	9,701	14,045	7,327	12,390
Payables turnover		11.19	8.97	6.83	30.98	17.07

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $83,307K ÷ $7,448K
= 11.19

The payables turnover ratio of SolarWinds Corp has fluctuated over the years based on the provided data.

- In December 31, 2020, the payables turnover ratio was 17.07, indicating that the company paid its suppliers approximately 17 times during that year.
- The ratio increased significantly to 30.98 by December 31, 2021, suggesting that the company improved its efficiency in paying its suppliers faster.
- However, there was a notable decline in the ratio to 6.83 by December 31, 2022, which may signal that the company took longer to settle its payables relative to the previous year.
- By December 31, 2023, the ratio improved slightly to 8.97, indicating a moderate increase in the efficiency of managing payables.
- Finally, by December 31, 2024, the ratio further increased to 11.19, suggesting that the company continued to enhance its payables management practices.

Overall, while there were fluctuations in SolarWinds Corp's payables turnover ratio over the years, the company appears to have made efforts to manage its payables more efficiently, which can positively impact its cash flow and liquidity position. Further analysis and comparison with industry benchmarks would provide additional insights into the effectiveness of the company's payables management strategy.