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.