SolarWinds Corp (SWI)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	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	255,454	252,117
Payables	US$ in thousands	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	13,796	10,345
Payables turnover		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	18.52	24.37

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $506,249K ÷ $9,505K
= 53.26

The payables turnover ratio for SolarWinds Corp has displayed fluctuations over the past several quarters. The ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers.

From December 2019 to September 2020, the payables turnover ratio ranged from 17.07 to 24.37, showing some variability but generally remaining within a relatively stable range. However, from March 2021 to June 2021, there was a significant increase in the ratio, reaching a peak of 166.68 in March 2021, which may suggest that SolarWinds Corp was paying off its suppliers at a much faster rate during that period.

Following the peak, the payables turnover ratio decreased in the subsequent quarters, indicating a potential return to a more normalized payment cycle. The ratio then fluctuated around the 40-60 range from September 2021 to March 2024, showing some variation but still indicating the company's ability to manage its accounts payable efficiently.

Overall, the payables turnover ratio of SolarWinds Corp has exhibited both stability and significant fluctuations, reflecting changes in the company's payment practices and potentially its relationships with suppliers. Analyzing trends in this ratio can provide insights into the company's financial health and efficiency in managing working capital.