SolarWinds Corp (SWI)

Debt-to-equity 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-equity ratio 0.85 0.83 0.87 0.82 0.63

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,194,230K ÷ $1,400,710K
= 0.85

The debt-to-equity ratio of SolarWinds Corp has shown a gradual increase over the years. It was 0.63 as of December 31, 2020, and has increased to 0.82 by the end of 2021, 0.87 by the end of 2022, 0.83 by the end of 2023, and 0.85 by the end of 2024.

This trend indicates that the company has been relying more on debt financing compared to equity financing, which may suggest an increased financial risk. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's leverage position and financial stability.