SolarWinds Corp (SWI)

Debt-to-equity 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-equity ratio		0.92	0.93	0.83	0.85	0.85	0.86	0.87	1.20	1.15	0.82	0.82	0.81	0.63	0.64	0.63	0.68	0.70	0.72	0.71	0.73

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,195,420K ÷ $1,305,310K
= 0.92

The debt-to-equity ratio of SolarWinds Corp has shown some fluctuations over the past few quarters. The ratio indicates the proportion of the company's debt to its shareholders' equity. A higher ratio implies higher financial risk, as it suggests that the company is more reliant on debt financing.

From December 2019 to June 2020, SolarWinds Corp had a relatively steady debt-to-equity ratio between 0.63 and 0.72. However, starting from September 2020, the ratio began to increase, reaching a peak of 1.20 in September 2022, which could indicate elevated debt levels compared to equity during that period.

Subsequently, the ratio showed a decreasing trend from September 2022 to December 2023, indicating a lower reliance on debt financing and a stronger equity position. The ratio ranged between 0.82 and 0.85 during this period.

Overall, the debt-to-equity ratio for SolarWinds Corp fluctuated within a range of 0.63 to 1.20 over the past five years. It is essential for the company to manage its debt levels prudently to maintain a healthy balance between debt and equity and ensure long-term financial stability.