SolarWinds Corp (SWI)

Debt-to-equity 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-equity ratio		0.83	0.87	0.82	0.63	0.71

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,190,930K ÷ $1,442,040K
= 0.83

The debt-to-equity ratio of SolarWinds Corp has shown some fluctuations over the past five years. In 2023, the ratio stands at 0.83, slightly lower compared to the previous year's ratio of 0.87. This suggests that the company has a higher proportion of equity relative to debt in its capital structure.

The trend over the past five years indicates some variability in the company's leverage position. In 2021 and 2022, the debt-to-equity ratio was relatively stable at 0.82 and 0.87, respectively. However, there was a notable increase from 0.63 in 2020 to 0.71 in 2019, indicating a higher reliance on debt financing in those particular years.

Overall, a debt-to-equity ratio below 1 implies that SolarWinds Corp has been financing a significant portion of its operations through equity rather than debt. It is important to monitor this ratio over time to assess the company's financial risk and capital structure efficiency.