Guidewire Software Inc (GWRE)
Fixed asset turnover
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 982,300 | 899,523 | 794,619 | 726,143 | 725,792 |
| Property, plant and equipment | US$ in thousands | 55,409 | 54,499 | 80,740 | 80,061 | 65,235 |
| Fixed asset turnover | 17.73 | 16.51 | 9.84 | 9.07 | 11.13 |
July 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $982,300K ÷ $55,409K
= 17.73
Guidewire Software Inc's fixed asset turnover ratio has been fluctuating over the past five years. In July 2020, the ratio was 11.13, indicating that the company generated $11.13 in sales for every dollar invested in fixed assets. The following year, the ratio decreased to 9.07, implying a slight decrease in efficiency in utilizing fixed assets to generate revenue.
However, in July 2022 and July 2023, the fixed asset turnover ratio improved to 9.84 and 16.51, respectively, suggesting that the company became more efficient in generating sales from its fixed assets during these periods. The significant increase in July 2023 indicates a substantial improvement in asset utilization efficiency.
In the most recent year, July 2024, Guidewire Software Inc's fixed asset turnover ratio further improved to 17.73, reflecting a continued trend of efficiently utilizing fixed assets to drive revenue growth. It shows that the company has been able to generate $17.73 in sales for every dollar invested in fixed assets, indicating a strong performance in utilizing assets effectively to generate revenue.
Peer comparison
Jul 31, 2024