SolarWinds Corp (SWI)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	79,862	130,518
Long-term debt	US$ in thousands	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	1,893,410	1,896,060
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
Return on total capital		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%	1.76%	2.91%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $178,280K ÷ ($1,195,420K + $1,305,310K)
= 7.13%

Return on total capital is a key financial ratio that indicates how effectively a company is generating profits from its total capital employed. SolarWinds Corp's return on total capital has shown fluctuations over the analyzed periods. The ratio ranged from a low of -31.98% in December 2022 to a high of 7.13% in June 2024.

In the recent quarters, SolarWinds Corp has shown a positive trend in improving its return on total capital, with percentages increasing steadily. However, it is notable that the company experienced significant negative returns in some periods, such as in the second half of 2022 where the ratios were notably below zero.

Overall, the return on total capital for SolarWinds Corp highlights the company's ability to generate profits relative to the total capital invested in the business. Investors and stakeholders should monitor this ratio closely to assess the company's efficiency in utilizing capital resources to generate returns.