SolarWinds Corp (SWI)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	251,850	284,695	121,738	732,116	270,708
Short-term investments	US$ in thousands	7,473	4,477	27,114	—	99,790
Total current liabilities	US$ in thousands	475,262	468,808	456,633	413,877	491,204
Cash ratio		0.55	0.62	0.33	1.77	0.75

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($251,850K + $7,473K) ÷ $475,262K
= 0.55

The cash ratio of SolarWinds Corp has shown varying trends over the years. As of December 31, 2020, the cash ratio was 0.75, indicating that the company had $0.75 in cash and cash equivalents for every $1 of current liabilities.

By December 31, 2021, the cash ratio had significantly improved to 1.77, signaling a healthier liquidity position with $1.77 in cash and cash equivalents for every $1 of current liabilities. This improvement could suggest better cash management or increased cash reserves during that period.

However, by December 31, 2022, the cash ratio declined to 0.33, which might raise concerns about the company's ability to cover its short-term obligations with available cash on hand. The substantial drop in the cash ratio could be attributed to various factors such as increased liabilities or decreased cash reserves.

In the following years, the cash ratio showed some improvement but remained relatively low compared to the peak in 2021. By December 31, 2024, the cash ratio stood at 0.55, indicating a moderate level of liquidity with $0.55 in cash and cash equivalents for every $1 of current liabilities.

Overall, analyzing the cash ratio trend of SolarWinds Corp reveals fluctuations in liquidity levels over the years, highlighting the importance of closely monitoring cash management and liquidity positions to ensure the company's ability to meet its short-term financial obligations.