SolarWinds Corp (SWI)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	3,250,920	3,200,010	4,792,130	5,710,480	5,310,740
Operating ROA		4.63%	-25.61%	-0.69%	0.92%	1.50%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $150,373K ÷ $3,250,920K
= 4.63%

The operating return on assets (ROA) of SolarWinds Corp has exhibited variability over the past five years, with figures ranging from negative to positive values. In 2023, the operating ROA improved significantly to 4.63%, indicating that the company generated $4.63 in operating income for every $100 of assets it owns. This demonstrates a positive trend compared to the negative operating ROA of -25.61% in 2022.

However, it is important to note that the company encountered challenges in 2022, with its operating ROA reaching a low of -25.61%, indicating that for that period, the company's operating income was insufficient to cover its asset base. The negative figure suggests potential operational inefficiencies or financial difficulties during that year.

In the preceding years, SolarWinds Corp's operating ROA was closer to breakeven, with values of -0.69% in 2021, 0.92% in 2020, and 1.50% in 2019. These figures suggest a relatively marginal return on assets, with the company generating minimal operating income relative to its asset base during those years.

Overall, the positive swing in operating ROA observed in 2023 is a favorable sign for SolarWinds Corp, indicating an improvement in operational efficiency and profitability. Continued monitoring of this ratio will be crucial to assess the company's ability to generate returns from its asset base in the future.