SolarWinds Corp (SWI)

Working capital 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
Total current assets	US$ in thousands	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	319,899	348,109
Total current liabilities	US$ in thousands	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	423,013	390,265
Working capital turnover		—	—	—	—	—	—	—	3.55	1.52	1.55	1.62	1.73	7.40	11.70	33.29	6.62	31.75	—	—	—

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $779,300K ÷ ($282,834K – $454,835K)
= —

The working capital turnover ratio for SolarWinds Corp has shown fluctuations over the past few quarters, ranging from a low of 1.52 to a high of 33.29. The working capital turnover indicates how efficiently the company is utilizing its working capital to generate sales revenue.

The ratio was relatively stable around 1.5 to 1.7 in the quarters leading up to the end of 2021, suggesting that the company was able to generate sales revenue at a fairly consistent level relative to its working capital during that period.

However, there were significant spikes in the ratio in the first half of 2021, with ratios of 7.40 and 11.70 in March and June 2021, respectively. These spikes could indicate either a sudden increase in sales revenue generated from a given level of working capital or a decrease in the level of working capital during that period.

The ratio then reached extremely high levels of 33.29 in December 2021, indicating a substantial increase in sales revenue relative to working capital. This could suggest either a significant increase in sales efficiency or a reduction in the level of working capital required to support sales activity.

Overall, the working capital turnover ratio for SolarWinds Corp has been variable, with significant fluctuations observed in certain quarters. Further analysis would be needed to understand the specific factors driving these changes and assess the company's overall working capital management efficiency.