SolarWinds Corp (SWI)

Return on equity (ROE)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Net income (ttm)	US$ in thousands	22,915	12,071	-9,109	-18,944	-307,991	-930,375	-929,413	-942,647	-659,407	-48,907	-51,408	104,950	126,431	150,900	158,475	38,985	30,876	15,912	18,642	-9,324
Total stockholders’ equity	US$ in thousands	1,305,310	1,285,120	1,442,040	1,394,950	1,398,660	1,385,800	1,369,650	1,300,460	1,617,810	2,277,380	2,287,900	2,322,500	2,971,710	2,950,170	3,010,690	2,782,430	2,685,710	2,632,360	2,649,520	2,593,560
ROE		1.76%	0.94%	-0.63%	-1.36%	-22.02%	-67.14%	-67.86%	-72.49%	-40.76%	-2.15%	-2.25%	4.52%	4.25%	5.11%	5.26%	1.40%	1.15%	0.60%	0.70%	-0.36%

June 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $22,915K ÷ $1,305,310K
= 1.76%

SolarWinds Corp's return on equity (ROE) has shown significant fluctuations over the past few quarters. The ROE was negative in most of the recent quarters, indicating challenges in generating profits relative to shareholders' equity.

Specifically, the ROE was low and negative in the last few quarters, with values ranging from -67.14% to 1.76%. This suggests that the company struggled to effectively utilize its equity to generate profits during this period.

Although there was a slight improvement in ROE in the most recent quarter compared to previous quarters, it still remains relatively low. This indicates that SolarWinds Corp may need to focus on improving its profitability and efficiency in utilizing shareholder funds to generate better returns in the future.

Overall, the trend in ROE for SolarWinds Corp indicates inconsistent and unsatisfactory performance in terms of generating profits from shareholders' equity. It is essential for the company to address the underlying issues affecting its ROE to enhance its financial performance and create long-term value for its shareholders.