SolarWinds Corp (SWI)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 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
Debt-to-assets ratio 0.38 0.38 0.39 0.37 0.37 0.37 0.37 0.37 0.37 0.45 0.46 0.39 0.39 0.39 0.34 0.34 0.33 0.35 0.35 0.36
Debt-to-capital ratio 0.46 0.47 0.48 0.48 0.45 0.46 0.46 0.46 0.47 0.55 0.54 0.45 0.45 0.45 0.39 0.39 0.38 0.40 0.41 0.42
Debt-to-equity ratio 0.85 0.88 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
Financial leverage ratio 2.26 2.29 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

SolarWinds Corp's solvency ratios provide insights into its ability to meet its long-term financial obligations. The Debt-to-assets ratio has been relatively stable over the years, ranging between 0.33 and 0.46. This indicates that about 33% to 46% of the company's assets are financed by debt.

The Debt-to-capital ratio shows a similar trend, fluctuating between 0.38 and 0.55. This ratio reflects the proportion of the company's capital that is funded by debt, with values between 38% and 55% over the period.

The Debt-to-equity ratio, which measures the proportion of financing provided by creditors versus shareholders, has been more volatile, ranging from 0.63 to 1.20. Higher values suggest a higher reliance on debt financing compared to equity.

The Financial leverage ratio, which indicates the extent to which the company is using debt to finance its operations, has shown a fluctuating trend between 1.88 and 2.67. A higher financial leverage ratio implies a higher level of financial risk due to increased reliance on debt.

Overall, SolarWinds Corp's solvency ratios indicate a reasonable level of solvency and ability to meet its debt obligations, but the increasing trend in some ratios may signal a growing reliance on debt financing, which could increase financial risk in the future.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 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
Interest coverage 24.22 19.53 16.64 15.08 14.03 13.10 -16.80 -84.02 -90.50 -94.25 -65.56 -1.13 -3.61 -2.26 0.46 5.13 9.32 7.52 8.96 8.42

The interest coverage ratio of SolarWinds Corp has displayed significant fluctuations over the reporting periods. From March 31, 2020, to June 30, 2021, the company maintained a healthy interest coverage ratio above 5, indicating its ability to meet interest obligations comfortably. However, from June 30, 2021, to December 31, 2022, the interest coverage ratio plummeted into negative territory, suggesting that the company may have faced challenges in generating sufficient operating income to cover interest expenses.

Subsequently, from March 31, 2023, to December 31, 2024, SolarWinds Corp experienced a notable recovery in its interest coverage ratio. The ratio increased steadily from negative figures to around 24.22 as of December 31, 2024. This improvement indicates a positive trend in the company's ability to cover its interest payments with operating income.

Overall, the analysis of SolarWinds Corp's interest coverage ratio showcases a volatile period characterized by drastic fluctuations, followed by a significant rebound in the company's ability to service its debt obligations. It is essential for stakeholders to monitor this ratio closely to assess the company's financial health and debt management capabilities.