SolarWinds Corp (SWI)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019
Operating income (ttm)	US$ in thousands	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	79,862	130,518
Total assets	US$ in thousands	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	5,310,740	5,156,080
Operating ROA		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%	1.50%	2.53%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $178,280K ÷ $3,058,690K
= 5.83%

SolarWinds Corp's operating return on assets (operating ROA) has shown variability over the past several quarters. The company's operating ROA was negative in the second and third quarters of 2023, indicating that the company generated an operating loss relative to its assets during that period. This negative trend improved significantly in the fourth quarter of 2023 and continued to increase in the first and second quarters of 2024.

While the operating ROA improved in recent quarters, it is worth noting that the metric remains relatively low, with values ranging from -25.61% to 5.83% over the period under review. The positive trend in the most recent quarters suggests that the company may be improving its operational efficiency in generating profits from its assets.

Overall, a sustained improvement in SolarWinds Corp's operating ROA would be a positive indicator of the company's ability to efficiently utilize its assets to generate operating income. Monitoring this trend over time will be crucial to assessing the company's operational performance and profitability.