SolarWinds Corp (SWI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	284,695	121,738	732,116	270,708	173,372
Short-term investments	US$ in thousands	4,477	27,114	—	99,790	—
Total current liabilities	US$ in thousands	468,808	456,633	413,877	491,204	423,013
Cash ratio		0.62	0.33	1.77	0.75	0.41

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($284,695K + $4,477K) ÷ $468,808K
= 0.62

The cash ratio of SolarWinds Corp has varied over the past five years. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. In 2023, the cash ratio stands at 0.62, indicating that the company has $0.62 of cash and cash equivalents for every $1 of current liabilities. This represents an improvement compared to the previous year's ratio of 0.33. However, the ratio is lower than in 2021 when it was 1.77, signaling a decrease in the company's ability to cover its short-term obligations with its available cash. The trend over the past five years indicates fluctuations in the company's liquidity position, highlighting the importance of closely monitoring its cash management and liquidity levels.