Guidewire Software Inc (GWRE)

Short-term

Turnover ratios

Guidewire Software Inc's inventory turnover has shown a positive trend over the years, increasing from 17.51 in July 2020 to 44.14 in July 2024. This indicates that the company is managing its inventory efficiently and selling its products more frequently.

The receivables turnover ratio has also been fairly consistent, ranging from 5.53 to 7.15 over the same period. This suggests that Guidewire Software is effectively collecting payments from its customers within a reasonable timeframe.

In terms of payables turnover, the company has shown a fluctuating trend with a notable increase from 19.68 in July 2022 to 51.68 in July 2024. This could indicate that Guidewire Software is taking longer to pay its suppliers, which may improve its cash flow position.

Lastly, the working capital turnover ratio has steadily increased from 0.65 in July 2020 to 2.15 in July 2024. This demonstrates that the company is generating more revenue relative to its working capital, reflecting improved operational efficiency.

Overall, Guidewire Software Inc's activity ratios suggest efficient management of inventory, receivables, payables, and working capital, which are all crucial aspects of the company's operational performance.

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Average number of days

The Days of Inventory on Hand (DOH) ratio for Guidewire Software Inc has shown a decreasing trend over the years with 20.84 days in July 31, 2020, dropping to 13.34 days in July 31, 2021, and then an absence of data in July 31, 2022. By July 31, 2023, the DOH ratio further decreased to 4.89 days and increased slightly to 8.27 days by July 31, 2024. This indicates that the company is managing its inventory more efficiently in recent years.

In terms of Days of Sales Outstanding (DSO), the company started with 57.45 days in July 31, 2020, which decreased to 52.31 days by July 31, 2021. However, there was an increase to 66.05 days in July 31, 2022, followed by a decline to 61.29 days in July 31, 2023, and a further drop to 51.03 days by July 31, 2024. This suggests that the company has been collecting its accounts receivable more effectively in the most recent years.

The Number of Days of Payables ratio for Guidewire Software Inc has seen fluctuations, starting at 13.58 days in July 31, 2020, increasing to 15.25 days in July 31, 2021, and rising further to 18.54 days by July 31, 2022. However, there was a drop to 15.23 days in July 31, 2023, and a significant decrease to 7.06 days by July 31, 2024. This indicates that the company has been managing its payables more efficiently in the most recent period.

Overall, these activity ratios suggest that Guidewire Software Inc has been improving its operational efficiency in managing its inventory, collecting receivables, and handling payables over the analyzed years.

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Long-term

Guidewire Software Inc's fixed asset turnover ratio has shown a slight decrease from 11.13 in July 2020 to 9.07 in July 2021, but has since improved to 17.73 in July 2024. This indicates that the company is generating more revenue from its fixed assets over time, with a significant increase in efficiency since 2021.

In terms of total asset turnover, the company had a consistent ratio of 0.31 in July 2020 and 2021, which then increased to 0.44 by July 2024. This implies that Guidewire Software Inc is utilizing its total assets more effectively to generate revenue, reflecting improved asset management efficiency over the years.

Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests that Guidewire Software Inc has been able to enhance its operational effectiveness and generate more revenue per dollar of assets employed, demonstrating positive long-term activity efficiency.