SolarWinds Corp (SWI)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	103,801	34,139	-908,027	-83,877	18,309
Revenue	US$ in thousands	796,895	758,740	719,367	718,632	716,770
Pretax margin		13.03%	4.50%	-126.23%	-11.67%	2.55%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $103,801K ÷ $796,895K
= 13.03%

The pretax margin of SolarWinds Corp has varied significantly over the years based on the provided data. In December 31, 2020, the company had a pretax margin of 2.55%, indicating that for every dollar of sales, the company generated $0.0255 of pretax profit. However, in the following year, December 31, 2021, the pretax margin plunged to -11.67%, signifying that the company incurred pretax losses exceeding its revenue.

The situation worsened in December 31, 2022, as the pretax margin plummeted to -126.23%, a concerning figure suggesting substantial losses well beyond the company's revenue. This steep decline may indicate operational inefficiencies, unexpected costs, or significant write-offs affecting the company's profitability.

Fortunately, by December 31, 2023, the company managed to turn its performance around with a pretax margin of 4.50%, signaling a return to profitability and an improvement in financial health. The positive trend continued into December 31, 2024, where SolarWinds achieved a pretax margin of 13.03%, demonstrating strong operational efficiency and profitability during that period.

Overall, the data reveals a turbulent financial performance for SolarWinds Corp, with significant fluctuations in pretax margin over the years. It is crucial for the company to address the factors driving these fluctuations to ensure sustainable profitability and operational stability in the future.