SolarWinds Corp (SWI)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.48	0.48	0.45	0.46	0.46	0.46	0.47	0.55	0.54	0.45	0.45	0.45	0.39	0.39	0.38	0.40	0.41	0.42	0.42	0.42

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,195,420K ÷ ($1,195,420K + $1,305,310K)
= 0.48

The debt-to-capital ratio of SolarWinds Corp has fluctuated over the past several quarters, ranging from 0.38 to 0.55. Generally, a higher debt-to-capital ratio indicates a relatively higher proportion of debt used to finance the company's operations compared to equity.

In the most recent quarter ending on June 30, 2024, the company's debt-to-capital ratio stood at 0.48, consistent with the previous quarter's ratio. This implies that approximately 48% of the company's capital structure is comprised of debt, while the remaining 52% is attributed to equity.

It is worth noting that the company's debt-to-capital ratio reached its highest point at 0.55 in the quarter ending on September 30, 2022, indicating a higher reliance on debt financing at that time. However, the ratio has shown some fluctuation but has generally remained within a range of 0.38 to 0.55 over the period analyzed.

Investors and analysts typically monitor the debt-to-capital ratio to assess the company's financial leverage and risk profile. A higher debt-to-capital ratio may suggest increased financial risk and interest rate sensitivity, while a lower ratio may indicate a more conservative capital structure. SolarWinds Corp's consistent monitoring and potential management of its debt-to-capital ratio demonstrate its awareness of maintaining a balanced capital structure.