SolarWinds Corp (SWI)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	150,373	-819,579	-32,871	52,253	79,862
Revenue	US$ in thousands	758,740	719,367	718,632	716,770	669,103
Operating profit margin		19.82%	-113.93%	-4.57%	7.29%	11.94%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $150,373K ÷ $758,740K
= 19.82%

The operating profit margin of SolarWinds Corp has shown a mixed performance over the past five years. In 2019, the company achieved a healthy operating profit margin of 11.94%, indicating that for every dollar of revenue generated, the company retained approximately 11.94 cents as operating profit. However, this metric declined in the subsequent years, dropping to 7.29% in 2020 and further to -4.57% in 2021, reflecting a period of decreased profitability and potentially inefficient operations.

The company faced a significant challenge in 2022, as its operating profit margin sharply declined to -113.93%, signaling a substantial loss incurred in its operations during that year. This negative figure suggests that the company's operating expenses exceeded its operating income, leading to a net operating loss for the year.

Nevertheless, SolarWinds Corp managed to improve its operating profit margin in 2023, recording a positive figure of 19.82%. This recovery indicates that the company made strides in enhancing its operational efficiency and profitability, with a stronger ability to generate operating income relative to revenue.

Overall, the fluctuating trend in SolarWinds Corp's operating profit margin indicates the company's varying performance in managing operational costs and generating operating income over the past five years, with recent improvements suggesting a potential positive turnaround in profitability.