SolarWinds Corp (SWI)

Financial leverage 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
Total assets	US$ in thousands	3,058,690	3,238,660	3,250,920	3,177,670	3,180,430	3,191,450	3,200,010	3,478,510	4,078,560	4,761,750	4,792,130	4,834,810	5,594,020	5,594,510	5,710,480	5,450,000	5,349,210	5,289,030	5,310,740	5,156,080
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
Financial leverage ratio		2.34	2.52	2.25	2.28	2.27	2.30	2.34	2.67	2.52	2.09	2.09	2.08	1.88	1.90	1.90	1.96	1.99	2.01	2.00	1.99

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,058,690K ÷ $1,305,310K
= 2.34

The financial leverage ratio of SolarWinds Corp has shown some fluctuation over the past few quarters, ranging from a low of 1.88 to a high of 2.67. The ratio measures the company's use of debt to finance its operations and indicates the proportion of total assets that are financed by liabilities.

SolarWinds Corp's financial leverage ratio has been above 2 for most of the periods, indicating that the company relies more on debt to fund its operations rather than equity. A higher financial leverage ratio suggests higher financial risk, as the company has a higher level of debt relative to its assets.

The slight fluctuations in the ratio over the periods may be attributed to changes in the company's capital structure, borrowing activities, or profitability. It is important to monitor the financial leverage ratio over time to assess the company's ability to meet its debt obligations and manage financial risk effectively.