SolarWinds Corp (SWI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 208,419 | 191,439 | 178,280 | 161,439 | 150,373 | 135,040 | -165,964 | -795,187 | -819,579 | -857,977 | -599,320 | -10,288 | -32,871 | -20,583 | 4,234 | 46,921 | 85,746 | 69,137 | 82,561 | 77,750 |
| Total assets | US$ in thousands | 3,168,290 | 3,118,420 | 3,058,690 | 3,238,660 | 3,250,920 | 3,177,670 | 3,180,430 | 3,191,450 | 3,200,010 | 3,478,510 | 4,078,560 | 4,761,750 | 4,792,130 | 4,834,810 | 5,594,020 | 5,594,510 | 5,710,480 | 5,450,000 | 5,349,210 | 5,289,030 |
| Operating ROA | 6.58% | 6.14% | 5.83% | 4.98% | 4.63% | 4.25% | -5.22% | -24.92% | -25.61% | -24.67% | -14.69% | -0.22% | -0.69% | -0.43% | 0.08% | 0.84% | 1.50% | 1.27% | 1.54% | 1.47% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $208,419K ÷ $3,168,290K
= 6.58%
The operating return on assets (Operating ROA) for SolarWinds Corp has displayed fluctuations over the periods from March 31, 2020, to December 31, 2024. The company's Operating ROA started at a moderate level of 1.47% in March 31, 2020, showing slight improvement to 1.54% by June 30, 2020.
However, there was a decline in Operating ROA to 0.08% by June 30, 2021, followed by negative percentages in the subsequent quarters until December 31, 2022. During this period, the company faced challenges in generating operating income in proportion to its total assets, resulting in negative Operating ROA figures.
From March 31, 2023, the trend reversed, showing improvements in Operating ROA performance. The company posted positive Operating ROA of 4.25% in September 30, 2023, and continued to increase steadily, reaching 6.58% by December 31, 2024. This signifies that SolarWinds Corp improved its ability to generate operating profits from its assets during these latter periods.
In conclusion, SolarWinds Corp's Operating ROA experienced volatility over the analyzed period, with a significant recovery in the later quarters, indicating a positive trend towards better utilization of its assets to generate operating income.
Peer comparison
Dec 31, 2024