SolarWinds Corp (SWI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 115,244 | 103,914 | 101,191 | 96,209 | 116,571 |
| Total current liabilities | US$ in thousands | 475,262 | 468,808 | 456,633 | 413,877 | 491,204 |
| Quick ratio | 0.79 | 0.84 | 0.55 | 2.00 | 0.99 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($251,850K
+ $7,473K
+ $115,244K)
÷ $475,262K
= 0.79
The quick ratio of SolarWinds Corp has shown some fluctuations over the past five years.
As of December 31, 2020, the quick ratio was 0.99, indicating that the company had almost enough liquid assets to cover its current liabilities. However, by December 31, 2021, the quick ratio improved significantly to 2.00, suggesting a stronger liquidity position with double the amount of liquid assets compared to current liabilities.
By December 31, 2022, the quick ratio decreased to 0.55, signaling a potential liquidity strain as the company may have had difficulty meeting its short-term obligations with its available liquid assets. The ratio slightly improved to 0.84 by December 31, 2023, but remained below 1, indicating continued vulnerabilities in meeting short-term obligations.
As of December 31, 2024, the quick ratio stood at 0.79, still below 1, and implying that SolarWinds Corp may face challenges in promptly settling its current liabilities using its quick assets.
In summary, the fluctuating trend of SolarWinds Corp's quick ratio depicts varying levels of liquidity strength over the years, with the company experiencing periods of improved and deteriorating liquidity positions.
Peer comparison
Dec 31, 2024