SolarWinds Corp (SWI)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,400,710 | 1,442,040 | 1,369,650 | 2,287,900 | 3,010,690 |
| ROE | 7.99% | -0.63% | -67.86% | -2.25% | 5.26% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $111,903K ÷ $1,400,710K
= 7.99%
The return on equity (ROE) of SolarWinds Corp has been fluctuating in recent years. As of December 31, 2020, the ROE was 5.26%, indicating that the company generated a modest return for its shareholders relative to the equity invested.
However, by December 31, 2021, the ROE had turned negative to -2.25%, suggesting that the company was not utilizing its equity effectively to generate profits for shareholders. This negative trend continued into December 31, 2022, with a significant decline in ROE to -67.86%, reflecting a substantial loss relative to the equity invested.
The company's ROE improved slightly by December 31, 2023, but remained negative at -0.63%, indicating that SolarWinds Corp was still facing challenges in generating positive returns for its shareholders.
By December 31, 2024, the ROE showed a positive turnaround, reaching 7.99%. This improvement suggests that the company may have implemented strategic changes or made operational improvements to increase profitability and efficiency, resulting in a better return for its shareholders.
Overall, the fluctuating ROE of SolarWinds Corp over the years indicates varying levels of profitability and efficiency in utilizing shareholder equity. It is essential for the company to continue monitoring and improving its ROE to ensure sustainable growth and value creation for its shareholders.
Peer comparison
Dec 31, 2024