SolarWinds Corp (SWI)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 34,139 | -908,027 | -83,877 | 18,309 | 15,497 |
| Revenue | US$ in thousands | 758,740 | 719,367 | 718,632 | 716,770 | 669,103 |
| Pretax margin | 4.50% | -126.23% | -11.67% | 2.55% | 2.32% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $34,139K ÷ $758,740K
= 4.50%
The pretax margin of SolarWinds Corp has shown significant fluctuations over the past five years. In 2023, the company reported a pretax margin of 4.50%, indicating that for every dollar of revenue generated, the company retained $0.045 before taxes. This represents a positive performance compared to the negative pretax margins in 2022 (-126.23%) and 2021 (-11.67%), where the company experienced losses before taxes that exceeded its revenues. The pretax margin rebounded in 2020 and 2019, with figures of 2.55% and 2.32% respectively, suggesting that the company was able to generate profits before tax during those years. The substantial fluctuations in the pretax margin signal potential volatility in SolarWinds Corp's financial performance and warrant a closer examination of the company's cost structure, revenue streams, and overall efficiency in generating profits.
Peer comparison
Dec 31, 2023