SolarWinds Corp (SWI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 208,419 | 150,373 | -819,579 | -32,871 | 52,253 |
| Long-term debt | US$ in thousands | 1,194,230 | 1,190,930 | 1,192,760 | 1,870,770 | 1,882,670 |
| Total stockholders’ equity | US$ in thousands | 1,400,710 | 1,442,040 | 1,369,650 | 2,287,900 | 3,010,690 |
| Return on total capital | 8.03% | 5.71% | -31.98% | -0.79% | 1.07% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $208,419K ÷ ($1,194,230K + $1,400,710K)
= 8.03%
The return on total capital for SolarWinds Corp has shown significant fluctuation over the past five years. In December 31, 2020, the return on total capital was 1.07%, indicating a relatively low return relative to the total capital employed. The following year, by December 31, 2021, the return on total capital decreased to -0.79%, suggesting that the company's capital utilization was inefficient and generated a negative return.
By December 31, 2022, the return on total capital plummeted to -31.98%, signifying a concerning performance that raised doubts about the company's ability to effectively generate returns from its total capital base. However, by December 31, 2023, the return on total capital rebounded to a positive 5.71%, indicating a potential improvement in capital utilization and profitability.
The most recent data point, as of December 31, 2024, reflects a return on total capital of 8.03%, showing a further improvement compared to the previous year. This suggests that SolarWinds Corp has been able to enhance its efficiency in generating returns from its total capital base in the most recent period.
Overall, the return on total capital for SolarWinds Corp has displayed considerable volatility over the years, with fluctuations ranging from negative figures to positive returns. Analyzing this metric over time can provide insights into the company's efficiency in utilizing its capital resources to generate profits.
Peer comparison
Dec 31, 2024