SolarWinds Corp (SWI)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.46	0.47	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

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 fluctuations over the past five years, ranging from a low of 0.38 to a high of 0.55. This ratio measures the proportion of a company's total capitalization that is financed by debt. A higher ratio indicates a higher level of debt relative to total capital, which can signify increased financial risk.

From December 31, 2021, to June 30, 2022, the debt-to-capital ratio increased significantly from 0.45 to 0.54, signaling a notable increase in debt relative to capital during this period. Subsequently, the ratio remained relatively stable around the 0.46 to 0.48 range for the following two years, indicating a consistent debt-to-capital structure during this time frame.

Overall, SolarWinds Corp's debt-to-capital ratio has experienced some volatility but has generally been within a moderate range, with a relatively stable trend in recent years. It is essential for stakeholders to monitor this ratio to assess the company's leverage and financial risk profile.