SolarWinds Corp (SWI)

Current ratio

		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
Total current assets	US$ in thousands	403,506	325,839	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
Total current liabilities	US$ in thousands	475,262	457,226	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
Current ratio		0.85	0.71	0.62	0.71	0.90	0.83	0.76	0.73	0.67	1.47	2.15	2.13	2.08	2.02	1.22	1.13	1.04	1.26	1.06	0.91

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $403,506K ÷ $475,262K
= 0.85

SolarWinds Corp's current ratio has shown fluctuations over the given time period. It started at a low of 0.91 as of March 31, 2020, indicating that the company may have had difficulties in meeting its short-term obligations with its current assets at that time.

However, the current ratio improved over the next few quarters, reaching a peak of 2.15 as of June 30, 2022. This significant increase suggests that the company had a strong ability to cover its short-term liabilities with its current assets during that period.

Subsequently, the current ratio fluctuated but generally remained above 1, indicating that SolarWinds Corp had sufficient current assets to cover its current liabilities. However, the ratio dropped to 0.67 as of December 31, 2022, which may raise concerns about the company's liquidity position at that point in time.

The current ratio improved in the following quarters but remained below 1, indicating potential liquidity challenges for the company. It is essential for SolarWinds Corp to closely monitor its current ratio to ensure it maintains a healthy balance between current assets and liabilities to meet its short-term financial obligations.