SolarWinds Corp (SWI)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	158,845	304,431	284,695	232,231	177,194	129,180	121,738	441,661	722,440	751,218	732,116	708,890	410,635	374,352	270,708	424,986	331,414	236,955	173,372	221,060
Short-term investments	US$ in thousands	10,705	8,382	4,477	2,979	995	11,553	27,114	50,878	55,768	—	—	—	—	—	99,790	—	—	—	—	—
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
Cash ratio		0.37	0.50	0.62	0.54	0.41	0.33	0.33	1.14	1.89	1.83	1.77	1.74	0.92	0.80	0.75	0.95	0.77	0.56	0.41	0.57

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($158,845K + $10,705K) ÷ $454,835K
= 0.37

The cash ratio of SolarWinds Corp has displayed fluctuations over the past several quarters. The ratio stood at 0.37 as of June 30, 2024, indicating that the company held $0.37 in cash and cash equivalents for every $1 of current liabilities. This represented a decrease from the previous quarter where the ratio was 0.50.

Looking back at historical data, the company's cash ratio has generally been above 1 in recent years, reaching as high as 1.89 as of June 30, 2022, and even 1.77 as of December 31, 2021. These figures suggest that in those periods, the company had more than enough liquid assets to cover its short-term liabilities.

The significant drop in the cash ratio from above 1 to below 1 in the latest quarter could be an indication that SolarWinds Corp may have experienced a reduction in its cash holdings relative to its current liabilities. This could potentially signal a tighter liquidity position that may warrant further investigation or monitoring. It is essential for the company to maintain a healthy cash position to meet its short-term obligations and fund its operations effectively.