SolarWinds Corp (SWI)

Receivables 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
Revenue (ttm)	US$ in thousands	779,300	771,084	763,326	752,646	742,451	733,451	724,655	716,477	718,352	719,106	718,632	717,464	721,011	716,888	716,770	778,716	834,388	890,471	932,525	906,211
Receivables	US$ in thousands	89,135	103,355	103,914	92,532	85,444	109,380	101,191	93,634	84,698	99,574	96,209	84,252	102,278	118,557	116,571	118,984	105,436	123,342	123,047	102,941
Receivables turnover		8.74	7.46	7.35	8.13	8.69	6.71	7.16	7.65	8.48	7.22	7.47	8.52	7.05	6.05	6.15	6.54	7.91	7.22	7.58	8.80

June 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $779,300K ÷ $89,135K
= 8.74

The receivables turnover ratio for SolarWinds Corp has shown fluctuations over the past few quarters, ranging from a low of 6.05 to a high of 8.80. The ratio indicates how many times during a period the company collects its average accounts receivable balance. A higher receivables turnover ratio generally indicates that the company is efficient in collecting payments from its customers.

The average receivables turnover for SolarWinds Corp over the time period is approximately 7.54. This suggests that, on average, the company collects its accounts receivable balance about 7.54 times a year.

It's worth noting that a consistent and stable receivables turnover ratio is generally preferred by investors and creditors, as it indicates a reliable and effective collection process. Fluctuations in the ratio could suggest changes in the company's credit policies, customer payment behaviors, or potential issues with accounts receivable management that may need further investigation.