SolarWinds Corp (SWI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,168,290 | 3,250,920 | 3,200,010 | 4,792,130 | 5,710,480 |
| Total stockholders’ equity | US$ in thousands | 1,400,710 | 1,442,040 | 1,369,650 | 2,287,900 | 3,010,690 |
| Financial leverage ratio | 2.26 | 2.25 | 2.34 | 2.09 | 1.90 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,168,290K ÷ $1,400,710K
= 2.26
The financial leverage ratio of SolarWinds Corp has shown a consistent upward trend over the years, increasing from 1.90 in December 2020 to 2.26 in December 2024. This indicates that the company has been relying more on debt to finance its operations and growth. While a higher financial leverage ratio can magnify returns on equity in good times, it also increases the risk of financial distress in challenging economic conditions. It is essential for stakeholders to closely monitor the company's ability to meet its debt obligations and manage its leverage effectively to ensure sustainable long-term growth and stability.
Peer comparison
Dec 31, 2024