SolarWinds Corp (SWI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 150,373 | -819,579 | -32,871 | 52,253 | 79,862 |
| Long-term debt | US$ in thousands | 1,190,930 | 1,192,760 | 1,870,770 | 1,882,670 | 1,893,410 |
| Total stockholders’ equity | US$ in thousands | 1,442,040 | 1,369,650 | 2,287,900 | 3,010,690 | 2,649,520 |
| Return on total capital | 5.71% | -31.98% | -0.79% | 1.07% | 1.76% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $150,373K ÷ ($1,190,930K + $1,442,040K)
= 5.71%
The return on total capital for SolarWinds Corp has varied significantly over the past five years. In 2023, the return on total capital improved to 5.71% from a negative return in 2022 of -31.98%. However, the return in 2023 is still below the levels seen in 2020 and 2019. This indicates that the company's ability to generate profits from its total capital has been unstable in recent years. It would be important for SolarWinds Corp to analyze the factors affecting its return on total capital and implement strategies to enhance this ratio over the long term for sustainable financial performance.
Peer comparison
Dec 31, 2023