SolarWinds Corp (SWI)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.46 | 0.45 | 0.47 | 0.45 | 0.38 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,194,230K ÷ ($1,194,230K + $1,400,710K)
= 0.46
The debt-to-capital ratio of SolarWinds Corp has shown a slight increasing trend over the years, rising from 0.38 in December 31, 2020, to 0.46 in December 31, 2024. This indicates that the company's reliance on debt financing in relation to its total capital has been gradually increasing. The ratio exceeding 0.40 suggests that a significant portion of the company's capital structure is comprised of debt.
It is important to monitor this ratio closely, as higher levels of debt relative to capital can indicate increased financial risk and potential difficulties in meeting debt obligations. Additionally, it may impact the company's creditworthiness and ability to access financing in the future. Further analysis of the company's debt obligations and capital structure alongside other financial ratios would provide a more comprehensive understanding of SolarWinds Corp's overall financial health and leverage position.
Peer comparison
Dec 31, 2024