SolarWinds Corp (SWI)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,168,290 | 3,250,920 | 3,200,010 | 4,792,130 | 5,710,480 |
| Operating ROA | 6.58% | 4.63% | -25.61% | -0.69% | 0.92% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $208,419K ÷ $3,168,290K
= 6.58%
Based on the data provided, SolarWinds Corp's operating return on assets (operating ROA) has shown significant variability over the past five years.
In December 2020, the company's operating ROA stood at 0.92%, indicating that for every dollar of assets, the company generated a net operating profit of 0.92 cents.
However, by December 2021, the operating ROA decreased to -0.69%, suggesting that the company's operating profit was insufficient to cover the assets employed, resulting in a negative return.
The situation worsened in December 2022, with the operating ROA declining sharply to -25.61%. This indicates a substantial loss in operating profitability relative to the assets utilized during that period.
The company managed to reverse this trend by December 2023, as the operating ROA improved to 4.63%, signaling a return to positive operating profitability and efficiency in asset utilization.
By December 2024, SolarWinds Corp further improved its operating ROA to 6.58%, indicating an even better profitability performance relative to its asset base compared to the preceding years.
Overall, the fluctuation in SolarWinds Corp's operating ROA over the five-year period suggests varying levels of operational efficiency and financial performance, highlighting the importance of closely monitoring and managing asset utilization to drive sustainable profitability.
Peer comparison
Dec 31, 2024