Guidewire Software Inc (GWRE)
Fixed asset turnover
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,202,459 | 1,137,404 | 1,084,574 | 1,035,991 | 980,497 | 958,940 | 925,752 | 917,466 | 905,341 | 879,982 | 869,940 | 841,962 | 812,614 | 797,450 | 763,970 | 739,399 | 743,267 | 757,506 | 761,703 | 755,099 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | — | — | 105,682 | 106,872 | 53,595 | 78,544 | 165,559 | 171,027 | 169,517 | 81,692 | 82,774 | 177,508 | 76,681 | 73,130 | 67,416 |
| Fixed asset turnover | — | — | — | — | — | — | — | 8.68 | 8.47 | 16.42 | 11.08 | 5.09 | 4.75 | 4.70 | 9.35 | 8.93 | 4.19 | 9.88 | 10.42 | 11.20 |
July 31, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,202,459K ÷ $—K
= —
The fixed asset turnover ratio for Guidewire Software Inc demonstrates notable fluctuations over the analyzed period from October 2020 to October 2023. This ratio, which measures the efficiency with which the company utilizes its fixed assets to generate sales, exhibits a pattern characterized by initial stability, significant volatility, and gradual recovery.
From October 2020 through October 2021, the ratio fluctuates within a relatively narrow range, starting at approximately 11.20 and ending at 8.93. During this interval, the ratio experienced some decline but remained indicative of moderate efficiency in asset utilization.
However, a marked decline is observable between October 2021 and April 2022, where the ratio dips sharply to 4.70—suggesting a substantial reduction in sales generated per dollar of fixed assets. This significant drop indicates either an increase in fixed asset base without proportional sales growth or a decline in sales efficiency.
Subsequently, the ratio stabilizes in the 4.75 to 5.09 range through mid-2022, reflecting a period of relatively limited efficiency. Notably, from January 2023 onwards, a notable upward trend emerges: the ratio increases sharply to 11.08, then peaks at 16.42 by April 2023. This rise implies enhanced utilization of fixed assets to generate sales, potentially driven by operational improvements, strategic asset management, or sales growth relative to fixed assets.
Following the April 2023 peak, the ratio declines to 8.47 by July 2023 and stabilizes at approximately 8.68 in October 2023. These adjustments suggest a partial normalization after the earlier surge, indicating a possible stabilization in asset efficiency.
Overall, the fixed asset turnover ratio reveals periods of both decline and recovery, with the most notable improvement occurring in early 2023. The fluctuations highlight the dynamic nature of the company's operational efficiency in employing its fixed assets to generate revenue over time.