SolarWinds Corp (SWI)

Short-term

Turnover ratios

The inventory turnover ratio for SolarWinds Corp is not provided in the table, indicating a lack of information on how efficiently the company manages its inventory levels.

The receivables turnover ratio demonstrates the company's ability to convert its accounts receivable into cash. Over the periods shown, the ratios have fluctuated somewhat but generally remained at a range between 6 to 9 times a year. This suggests that the company has been collecting its receivables at a relatively consistent pace.

The payables turnover ratio indicates how quickly the company pays its suppliers. The ratios have varied significantly from period to period, ranging from as low as 16 to as high as 166 times a year. A higher payables turnover ratio may imply that SolarWinds has been paying its suppliers more quickly, which can impact cash flow management and vendor relationships.

The working capital turnover ratio is not available for most periods but does show that in some instances, the company has efficiently utilized its working capital to generate sales. For example, in September 2022, the ratio was 3.55, indicating that for every dollar of working capital, the company generated $3.55 in revenue.

In summary, SolarWinds Corp's activity ratios suggest varying levels of efficiency in managing its receivables, payables, and working capital over the periods presented, with some fluctuations that may need further investigation to understand the underlying reasons.

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Average number of days

Days of inventory on hand (DOH) for SolarWinds Corp are not provided in the data table. However, we can analyze the Days of Sales Outstanding (DSO) and the Number of Days of Payables to gain insights into the efficiency of the company's inventory management.

DSO measures how quickly the company collects its accounts receivable. A higher DSO indicates that it takes longer for the company to collect revenue from its sales. SolarWinds Corp's DSO has fluctuated over the periods, ranging from 41.46 days to 60.36 days. The company seems to have had some challenges in collecting revenue efficiently, as indicated by the higher DSO values recorded in some periods.

On the other hand, the Number of Days of Payables reflects how long it takes for the company to pay its suppliers. A lower number of days indicates that the company is paying its suppliers quickly. SolarWinds Corp's payables days have ranged from 2.19 days to 32.68 days over the periods analyzed. The company appeared to improve its payables management in some periods but faced challenges in others.

In summary, SolarWinds Corp should focus on improving its accounts receivable collection process to reduce DSO and enhance cash flows. Additionally, the company should continue to manage its payables effectively to maintain good relationships with its suppliers while optimizing working capital.

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Long-term

The fixed asset turnover ratio for SolarWinds Corp has shown a generally increasing trend over the past few years, indicating that the company is generating more revenue from its fixed assets. This suggests that SolarWinds efficiently utilizes its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has been fluctuating but remains relatively low. This suggests that SolarWinds generates a lower level of revenue compared to the total assets it holds. A low total asset turnover ratio could indicate inefficiencies in utilizing the company's total assets to generate sales.

Overall, while the fixed asset turnover ratio reflects positive efficiency in utilizing fixed assets to generate revenue, the lower total asset turnover ratio may indicate room for improvement in utilizing the company's total assets more efficiently to generate sales.