SolarWinds Corp (SWI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 208,419 | 191,439 | 178,280 | 161,439 | 150,373 | 135,040 | -165,964 | -795,187 | -819,579 | -857,977 | -599,320 | -10,288 | -32,871 | -20,583 | 4,234 | 46,921 | 85,746 | 69,137 | 82,561 | 77,750 |
| Long-term debt | US$ in thousands | 1,194,230 | 1,195,850 | 1,195,420 | 1,195,800 | 1,190,930 | 1,191,380 | 1,191,820 | 1,192,280 | 1,192,760 | 1,564,440 | 1,865,270 | 1,868,010 | 1,870,770 | 1,873,470 | 1,877,220 | 1,879,940 | 1,882,670 | 1,885,350 | 1,888,030 | 1,890,720 |
| Total stockholders’ equity | US$ in thousands | 1,400,710 | 1,364,360 | 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 |
| Return on total capital | 8.03% | 7.48% | 7.13% | 6.51% | 5.71% | 5.22% | -6.41% | -30.84% | -31.98% | -29.95% | -17.21% | -0.25% | -0.79% | -0.49% | 0.09% | 0.97% | 1.75% | 1.48% | 1.81% | 1.72% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 experienced fluctuations over the analyzed period. It averaged around 1-2% in the years 2020 and 2021, with a slight decline towards the end of 2021. However, a significant decrease was observed in the first half of 2022, with negative returns reaching as low as -31.98% by the end of the year.
The company's performance improved in 2023, rebounding from negative returns to positive values, reaching over 5% by the end of the year. This positive trend continued into 2024, with steady increases in return on total capital each quarter, reaching 8.03% by December 31, 2024.
This turnaround showcases the company's efforts to optimize its capital allocation and generate more efficient returns for its stakeholders. It indicates a positive momentum in the company's financial performance and potential for sustainable growth in the future.
Peer comparison
Dec 31, 2024