SolarWinds Corp (SWI)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-9,109	-929,413	-51,408	158,475	18,642
Total stockholders’ equity	US$ in thousands	1,442,040	1,369,650	2,287,900	3,010,690	2,649,520
ROE		-0.63%	-67.86%	-2.25%	5.26%	0.70%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-9,109K ÷ $1,442,040K
= -0.63%

SolarWinds Corp's return on equity (ROE) has fluctuated significantly over the past five years. The ROE was negative in 2023 and 2022, indicating that the company's net income was insufficient to generate a positive return for shareholders' equity. In 2021, the ROE showed a slight improvement from the previous year but remained negative.

However, there was a turnaround in 2020 when the ROE turned positive at 5.26%, suggesting that the company was able to generate a profit relative to the shareholders' equity. This positive trend continued into 2019 with an ROE of 0.70%.

The drastic declines in ROE in 2022 and 2023 may raise concerns about the company's profitability and efficiency in utilizing its equity to generate returns. It would be essential for SolarWinds Corp to assess its financial performance and implement strategies to improve ROE for sustainable growth and value creation for its shareholders.