SolarWinds (SolarWinds) Interest Coverage

: 1.52 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. SolarWinds's Operating Income for the three months ended in Dec. 2023 was $43.4 Mil. SolarWinds's Interest Expense for the three months ended in Dec. 2023 was $-28.5 Mil. SolarWinds's interest coverage for the quarter that ended in Dec. 2023 was 1.52. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for SolarWinds's Interest Coverage or its related term are showing as below:

SWI' s Interest Coverage Range Over the Past 10 Years
Min: 0.41 Med: 0.78 Max: 1.3
Current: 1.3

SWI's Interest Coverage is ranked worse than
93.08% of 1603 companies
in the Software industry
Industry Median: 29.52 vs SWI: 1.30

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

SolarWinds Interest Coverage Historical Data

The historical data trend for SolarWinds's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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SolarWinds Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.74

0.69

0.86

1.30

SolarWinds Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.09	1.25	1.11	1.31	1.52

Competitive Comparison

For the Software - Infrastructure subindustry, SolarWinds's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

SolarWinds Interest Coverage Distribution

For the Software industry and Technology sector, SolarWinds's Interest Coverage distribution charts can be found below:

* The bar in red indicates where SolarWinds's Interest Coverage falls into.

SolarWinds Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

SolarWinds's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, SolarWinds's Interest Expense was $-115.8 Mil. Its Operating Income was $150.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,240.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	150.373	/	-115.848
	=	1.30

SolarWinds's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, SolarWinds's Interest Expense was $-28.5 Mil. Its Operating Income was $43.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,240.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	43.37	/	-28.51
	=	1.52

The higher the ratio, the stronger the company's Financial Strength is.

SolarWinds (NYSE:SWI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

SolarWinds Interest Coverage Related Terms

Thank you for viewing the detailed overview of SolarWinds's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

SolarWinds (SolarWinds) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » SolarWinds Corp (NYSE:SWI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

0OIA:Germany

Address

7171 Southwest Parkway, Building 400, Austin, TX, USA, 78735

Website

https://www.solarwinds.com

SolarWinds Corp is a provider of information technology (IT), and management software. Company offers full-stack observability solutions. The company's business is focused on building products that enable technology professionals and leaders to securely monitor and manage the performance of their IT environments, whether on-premises, in the cloud or in hybrid deployments. The products offered are designed to monitor and manage networks, systems, databases and applications across on-premises, multi-cloud and hybrid IT environments without the need for customization or professional services. Majority of company's revenue is earned in United States.

Executives

Easwaran Sundaram	director	C/O JETBLUE AIRWAYS CORPORATION, 27-01 QUEENS PLAZA NORTH, LONG ISLAND CITY NY 11101
Jason Bliss	officer: EVP General Counsel	7171 SOUTHWEST PKWY STE 400, AUSTIN TX 78735-6140
Rohini Kasturi	officer: EVP, Chief Product Officer	7171 SOUTHWEST PARKWAY, BUILDING 400, AUSTIN TX 78735
Andrea Webb	officer: EVP, Chief Customer Officer	7171 SOUTHWEST PARKWAY, BUILDING 400, AUSTIN TX 78735
Sudhakar Ramakrishna	director, officer: CEO & President	4750 WILLOW RD., PLEASANTON CA 94588
Cathleen A Benko	director	ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Douglas P Smith	director	C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
David Gardiner	officer: Executive VP, Core IT	7171 SOUTHWEST PKWY STE 400, AUSTIN TX 78735-6140
James Barton Kalsu	officer: EVP CFO & Treasurer	7171 SOUTHWEST PARKWAY, BUILDING 400, AUSTIN TX 78735
Hermes Usa Investors Venture Ii, Lp	other: See Remarks	C/O CORPORATION SERVICES COMPANY, 251 LITTLE FALLS DRIVE, WILMINGTON DE 19808-1674
Neuberger Berman Insurance Fund Series Interests Of The Sali Multi-series Fund, L.p.	10 percent owner	325 N. SAINT PAUL STREET, SUITE 4900, DALLAS TX 75201
Harbourvest Global Annual Private Equity Fund L.p.	other: See Remarks	HARBOURVEST PARTNERS, LLC, ONE FINANCIAL CENTER, 44TH FLOOR, BOSTON MA 02111
Alpinvest Partners B.v.	10 percent owner	JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Nb Alternatives Advisers Llc	10 percent owner	325 N. SAINT PAUL STREET, SUITE 4900, DALLAS TX 75201
Howard Hughes Medical Institute	other: HHMI is a member of 10% group	4000 JONES BRIDGE ROAD, CHEVY CHASE MD 20815-6789