SolarWinds Corp (SWI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 111,903 | -9,109 | -929,413 | -51,408 | 158,475 |
| Total assets | US$ in thousands | 3,168,290 | 3,250,920 | 3,200,010 | 4,792,130 | 5,710,480 |
| ROA | 3.53% | -0.28% | -29.04% | -1.07% | 2.78% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $111,903K ÷ $3,168,290K
= 3.53%
As of December 31, 2020, SolarWinds Corp's return on assets (ROA) stood at 2.78%, indicating that the company generated $0.0278 in profit for every dollar of assets it possesses. However, by the end of 2021, the ROA dropped to -1.07%, suggesting that the company experienced a loss on its assets. The decline continued significantly into 2022, with ROA plummeting to -29.04%, signaling a substantial decrease in profitability relative to its asset base.
In a partial recovery, by December 31, 2023, the ROA improved slightly to -0.28%, although remaining negative. Finally, at the end of 2024, SolarWinds Corp managed to achieve a ROA of 3.53%, indicating a positive turn in performance, with the company efficiently utilizing its assets to generate profit.
Overall, the trend in SolarWinds Corp's ROA suggests a period of volatility and challenges, with fluctuations from positive to negative territory. The company will need to focus on sustaining and enhancing its profitability relative to its asset base to ensure long-term financial health and growth.
Peer comparison
Dec 31, 2024