SolarWinds Corp (SWI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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	—
Receivables	US$ in thousands	103,914	101,191	96,209	116,571	123,047
Total current liabilities	US$ in thousands	468,808	456,633	413,877	491,204	423,013
Quick ratio		0.84	0.55	2.00	0.99	0.70

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($284,695K + $4,477K + $103,914K) ÷ $468,808K
= 0.84

The quick ratio of SolarWinds Corp has varied over the past five years, with significant fluctuations observed.

In 2023, the quick ratio stood at 0.84, indicating that the company had $0.84 in liquid assets available to cover each dollar of current liabilities. This shows an improvement from the previous year's ratio of 0.55, suggesting better liquidity management.

The quick ratio was notably high in 2021 at 2.00, indicating a strong ability to meet short-term obligations with quick assets. This could signify a conservative approach to liquidity management or a substantial increase in current assets during that period.

In 2020, the quick ratio was 0.99, suggesting that the company had nearly enough liquid assets to cover its current liabilities. This is a reasonably healthy ratio, indicating a moderate level of liquidity.

The quick ratio in 2019 was 0.70, showing a lower liquidity position compared to the subsequent years. This ratio implies that the company may have faced challenges in meeting short-term obligations with its readily available assets.

Overall, the trend in SolarWinds Corp's quick ratio demonstrates variability in liquidity management over the past five years, with fluctuations reflecting changes in the company's ability to meet its short-term obligations using its liquid assets.