Guidewire Software Inc (GWRE)
Days of sales outstanding (DSO)
Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Receivables turnover | 10.66 | 7.15 | 9.13 | 7.17 | 9.79 | 5.95 | 6.74 | 6.72 | 9.37 | 5.53 | 9.10 | 6.68 | 8.98 | 6.98 | 10.32 | 8.05 | 9.43 | 6.35 | 8.72 | 6.85 | |
DSO | days | 34.23 | 51.03 | 40.00 | 50.92 | 37.30 | 61.33 | 54.12 | 54.33 | 38.97 | 66.05 | 40.12 | 54.62 | 40.64 | 52.31 | 35.39 | 45.37 | 38.70 | 57.45 | 41.84 | 53.28 |
October 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.66
= 34.23
Based on the data provided, Guidewire Software Inc's Days Sales Outstanding (DSO) has shown fluctuations over the analyzed period. DSO is a measure of how long it takes the company to collect payment after making a sale.
From January 2020 to October 2021, DSO ranged from a low of 35.39 days in April 2021 to a high of 57.45 days in July 2020. This variability suggests some inconsistency in the company's collection processes during this time.
However, from January 2022 onwards, there is a pattern of DSO fluctuating between 37.30 days and 66.05 days. This could indicate potential challenges in managing accounts receivable efficiently during this period.
It is worth noting that a lower DSO generally indicates that the company is collecting payments from customers more quickly, which can improve cash flow. Conversely, a higher DSO may indicate inefficiencies in collections and impact liquidity.
In conclusion, while Guidewire Software Inc's DSO has shown some variability over the analyzed period, further investigation into the underlying factors driving these fluctuations would be necessary to assess the company's effectiveness in managing its accounts receivable and overall financial health accurately.
Peer comparison
Oct 31, 2024