SolarWinds Corp (SWI)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 796,895 | 758,740 | 719,367 | 718,632 | 716,770 |
| Total assets | US$ in thousands | 3,168,290 | 3,250,920 | 3,200,010 | 4,792,130 | 5,710,480 |
| Total asset turnover | 0.25 | 0.23 | 0.22 | 0.15 | 0.13 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $796,895K ÷ $3,168,290K
= 0.25
Total asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its assets. For SolarWinds Corp, the total asset turnover has shown an upward trend from 0.13 in December 31, 2020, to 0.25 in December 31, 2024. This indicates that the company has been able to generate more revenue relative to its total assets over the years.
The increase in total asset turnover implies that SolarWinds Corp has become more efficient in utilizing its assets to generate sales. This trend could be a positive sign of improved operational efficiency and productivity within the company. Furthermore, a higher total asset turnover ratio may also suggest effective management of inventory, accounts receivable, and other working capital components, leading to better overall financial performance.
Overall, the improving trend in SolarWinds Corp's total asset turnover ratio signifies the company's ability to effectively leverage its assets to drive revenue growth and potentially enhance shareholder value.
Peer comparison
Dec 31, 2024