SolarWinds Corp (SWI)

Working capital 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
Revenue (ttm) US$ in thousands 794,845 789,734 779,300 771,084 763,326 752,646 742,451 733,451 724,655 716,477 718,352 719,106 718,632 717,464 721,011 716,888 716,770 778,716 834,388 890,471
Total current assets US$ in thousands 403,506 325,839 282,834 442,619 421,327 361,096 330,679 314,019 307,393 635,286 885,974 873,351 858,840 820,480 544,363 530,410 512,733 563,109 459,078 385,717
Total current liabilities US$ in thousands 475,262 457,226 454,835 625,760 468,808 435,518 436,479 430,339 456,633 433,361 411,991 410,691 413,877 406,568 446,873 469,159 491,204 445,397 432,800 425,324
Working capital turnover — — — — — — — — — 3.55 1.52 1.55 1.62 1.73 7.40 11.70 33.29 6.62 31.75 —

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $794,845K ÷ ($403,506K – $475,262K)
= —

The working capital turnover ratio for SolarWinds Corp indicates how efficiently the company is utilizing its working capital to generate sales revenue. Looking at the historical data provided, we observe fluctuations in the working capital turnover ratio over time.

In June 2020, the working capital turnover ratio was at a high level of 31.75, implying that the company generated $31.75 in revenue for every dollar of working capital invested. However, this high turnover rate was not sustainable as the ratio decreased significantly in the subsequent quarters.

The ratio dropped to 6.62 in September 2020, indicating a decline in working capital efficiency. It further decreased to 1.73 by September 2021, suggesting that the company was less effective in utilizing its working capital to drive sales during that period.

The working capital turnover ratio continued to fluctuate at relatively low levels between 2021 and 2022, ranging from 1.52 to 3.55. These lower turnover ratios could be attributed to changes in the company's operating cycle, inventory management, or payment policies.

Notably, the data ends with a working capital turnover ratio of 1.62 in December 2021, demonstrating a continued challenge in efficiently converting working capital into sales revenue.

In conclusion, the working capital turnover ratio for SolarWinds Corp has shown inconsistency and decline over the analyzed period, indicating potential inefficiencies in managing its working capital. Further analysis and monitoring of this ratio would be necessary to assess the company's ability to optimize its working capital for revenue generation in the future.