Guidewire Software Inc (GWRE)

Days of sales outstanding (DSO)

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Receivables turnover		7.15	5.96	5.53	6.98	6.35
DSO	days	51.03	61.29	66.05	52.31	57.45

July 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.15
= 51.03

Guidewire Software Inc's Days Sales Outstanding (DSO) has displayed some fluctuations over the past five years, with figures ranging from a low of 51.03 days to a high of 66.05 days. In July 2020, the DSO stood at 57.45 days, showing a slight decrease to 52.31 days by July 2021. However, there was an increase in DSO to 66.05 days by July 2022. Over the next two years, the DSO decreased to 61.29 days in July 2023 and further down to 51.03 days by July 2024.

Overall, the trend in DSO indicates some variability in the collection of accounts receivable over the years. A lower DSO indicates faster collection from customers, improving the company's cash flow and liquidity. Conversely, a higher DSO may suggest inefficiencies in accounts receivable management, potentially impacting cash flow and working capital. Monitoring DSO trends can provide insights into the efficiency of Guidewire's credit and collection processes, as well as its overall financial health.