SolarWinds Corp (SWI)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 52.92 | 46.96 | 41.75 | 48.92 | 49.69 | 44.87 | 42.01 | 54.43 | 50.97 | 47.70 | 43.04 | 50.54 | 48.87 | 42.86 | 51.78 | 60.36 | 59.36 | 55.77 | 46.12 | 50.56 |
| Number of days of payables | days | 5.54 | 6.80 | 6.85 | 6.74 | 6.79 | 6.03 | 4.72 | 2.19 | 3.44 | 2.60 | 2.77 | 8.75 | 11.78 | 22.08 | 17.20 | 32.68 | 21.39 | 21.26 | 17.32 | 16.01 |
| Cash conversion cycle | days | 47.38 | 40.16 | 34.90 | 42.18 | 42.90 | 38.84 | 37.28 | 52.24 | 47.53 | 45.10 | 40.27 | 41.79 | 37.08 | 20.78 | 34.58 | 27.68 | 37.97 | 34.51 | 28.81 | 34.55 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 52.92 – 5.54
= 47.38
The cash conversion cycle (CCC) of SolarWinds Corp has shown fluctuations over the periods analyzed from March 31, 2020, to December 31, 2024. The CCC is a measure of how efficiently a company manages its working capital.
The trend in SolarWinds Corp's CCC reveals that the company's efficiency in converting its invested resources into cash has varied. The cycle started at 34.55 days on March 31, 2020, decreased to 27.68 days by March 31, 2021, suggesting an improvement in managing its cash flow during this period.
However, the CCC increased to 52.24 days by March 31, 2023, indicating a potential delay in converting investments back into cash. Subsequently, the cycle decreased to 34.90 days by June 30, 2024, before slightly increasing to 47.38 days by December 31, 2024.
The fluctuating CCC trend suggests that SolarWinds Corp may have experienced challenges in managing its working capital efficiently over the periods analyzed. Companies typically aim to reduce their CCC to improve liquidity and optimize their cash flow management. SolarWinds Corp may want to focus on streamlining its receivables, inventory, and payables processes to shorten its cash conversion cycle and enhance its overall financial health.
Peer comparison
Dec 31, 2024