SolarWinds Corp (SWI)

Quick 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	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	—	—	—	—	—
Receivables	US$ in thousands	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	123,047	102,941
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
Quick ratio		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	0.70	0.83

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($158,845K + $10,705K + $89,135K) ÷ $454,835K
= 0.57

The quick ratio of SolarWinds Corp has shown fluctuations over the years, indicating varying levels of liquidity. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.

The quick ratio has generally been above 1.0, which suggests that the company has had sufficient liquid assets to cover its current liabilities. However, the ratio has experienced some declines in recent quarters, falling from a high of 2.09 in March 2022 to 0.57 in June 2024.

The significant decrease in the quick ratio from 2.09 in March 2022 to 0.57 in June 2024 may raise concerns about the company's short-term liquidity position. A quick ratio below 1.0 indicates that the company may have difficulty meeting its short-term obligations with its liquid assets alone.

It is important for stakeholders to monitor the trend of the quick ratio over time to assess the company's ability to manage its short-term financial obligations effectively and sustainably.