SolarWinds Corp (SWI)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	490,947	504,634	506,249	516,590	521,491	544,210	844,233	1,474,820	1,490,239	1,345,023	990,686	299,711	227,016	224,997	220,093	215,551	211,443	221,508	233,367	245,441
Payables	US$ in thousands	7,448	9,406	9,505	9,541	9,701	8,996	10,928	8,848	14,045	9,589	7,515	7,188	7,327	13,611	10,369	19,299	12,390	12,903	11,071	10,765
Payables turnover		65.92	53.65	53.26	54.14	53.76	60.49	77.25	166.68	106.10	140.27	131.83	41.70	30.98	16.53	21.23	11.17	17.07	17.17	21.08	22.80

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $490,947K ÷ $7,448K
= 65.92

The payables turnover ratio for SolarWinds Corp has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio indicates how efficiently the company is managing its payables by assessing the number of times the company pays off its suppliers during a specific period.

From March 31, 2020, to June 30, 2020, the payables turnover decreased from 22.80 to 21.08, suggesting a slight decline in the speed at which the company was paying its suppliers. Subsequently, there was a further decrease in the ratio to 17.17 by September 30, 2020, indicating a slower rate of payables turnover.

However, there was a slight improvement by December 31, 2020, with the payables turnover increasing to 17.07. The ratio then decreased notably to 11.17 by March 31, 2021, suggesting delays in paying off supplier obligations. This trend reversed in the following quarters, with the ratio rising to 21.23 by June 30, 2021, indicating an improvement in payables management.

The trend continued with fluctuations in the payables turnover ratio throughout the subsequent quarters up to June 30, 2024. Notably, there was a significant increase in the ratio to 131.83 by June 30, 2022, followed by further peaks and declines in subsequent quarters. The ratio ranged from a high of 166.68 on March 31, 2023, to a low of 53.26 on June 30, 2024.

Overall, the payables turnover ratio for SolarWinds Corp has displayed variability over the years, suggesting changes in the company's payment practices and efficiency in managing supplier obligations. Further analysis and comparison with industry benchmarks may provide additional insights into the company's payables management performance.