SolarWinds Corp (SWI)

Quick 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
Cash	US$ in thousands	251,850	193,017	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
Short-term investments	US$ in thousands	7,473	6,176	10,705	8,382	4,477	2,979	995	11,553	27,114	50,878	55,768	—	—	—	—	—	99,790	—	—	—
Receivables	US$ in thousands	115,244	101,614	89,135	103,355	103,914	92,532	85,444	109,380	101,191	93,634	84,698	99,574	96,209	84,252	102,278	118,557	116,571	118,984	105,436	123,342
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
Quick ratio		0.79	0.66	0.57	0.67	0.84	0.75	0.60	0.58	0.55	1.35	2.09	2.07	2.00	1.95	1.15	1.05	0.99	1.22	1.01	0.85

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 displayed fluctuations over the past few years. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventory, was relatively low at 0.85 as of March 31, 2020. The ratio improved gradually over the next few quarters, reaching its peak at 2.09 as of June 30, 2022.

However, there was a significant drop in the quick ratio in the following quarters, falling to 0.55 as of December 31, 2022. This low ratio indicates that SolarWinds Corp may have had difficulties meeting its short-term liabilities without relying on inventory.

The ratio showed some recovery in the subsequent periods, hovering around the range of 0.57 to 0.84 up to December 31, 2024. Overall, the quick ratio trend suggests variability in the company's short-term liquidity position, highlighting the importance of monitoring cash and near-cash assets to cover immediate financial obligations.