SolarWinds Corp (SWI)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.45	0.47	0.45	0.38	0.42

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,190,930K ÷ ($1,190,930K + $1,442,040K)
= 0.45

The debt-to-capital ratio of SolarWinds Corp has exhibited some fluctuation over the past five years. It increased from 0.42 in 2019 to 0.47 in 2022, but then decreased to 0.45 in 2023, remaining relatively stable around the 0.45 range since 2021. This indicates that a significant portion of the company's capital structure is funded by debt, with debt accounting for approximately 45% to 47% of the total capital employed by the company. It is important to note that a higher debt-to-capital ratio may suggest higher financial risk due to increased leverage, while a lower ratio may indicate a more conservative capital structure. Continued monitoring of this ratio is advisable to assess the company's financial health and risk profile.