SolarWinds Corp (SWI)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	208,419	150,373	-819,579	-32,871	52,253
Revenue	US$ in thousands	796,895	758,740	719,367	718,632	716,770
Operating profit margin		26.15%	19.82%	-113.93%	-4.57%	7.29%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $208,419K ÷ $796,895K
= 26.15%

Based on the data provided for SolarWinds Corp's operating profit margin over the years, there are noticeable fluctuations in the company's profitability:

1. December 31, 2020: The operating profit margin was at 7.29%, indicating that the company was efficiently generating profits from its core operations at that time.

2. December 31, 2021: The operating profit margin declined significantly to -4.57%, which suggests that the company's operational expenses might have outpaced its revenue, resulting in a negative operating profit margin.

3. December 31, 2022: The operating profit margin further deteriorated to -113.93%, which is a concerning sign indicating substantial losses from operations, potentially due to cost inefficiencies or other operational challenges.

4. December 31, 2023: There was a notable recovery in the operating profit margin to 19.82%, indicating that the company was able to improve its operational efficiency and profitability during this period.

5. December 31, 2024: The operating profit margin significantly improved to 26.15%, suggesting that SolarWinds Corp made substantial progress in enhancing its profitability and effectively managing its operational costs.

Overall, the analysis of SolarWinds Corp's operating profit margin highlights the company's performance in generating profits from its core business activities. The fluctuations observed over the years underscore the importance of closely monitoring and managing operational efficiency to ensure sustainable profitability and financial health.