Guidewire Software Inc (GWRE)

Inventory turnover

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Cost of revenue	US$ in thousands	785,998	829,923	795,936	666,312	608,259
Inventory	US$ in thousands	17,807	11,112	0	24,361	34,737
Inventory turnover		44.14	74.69	—	27.35	17.51

July 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $785,998K ÷ $17,807K
= 44.14

The inventory turnover of Guidewire Software Inc has shown significant improvement over the past few years. In July 2020, the inventory turnover ratio was 17.51, indicating that the company's inventory was turning over approximately 17.51 times during the year. This ratio increased to 27.35 in July 2021, reflecting a more efficient management of inventory.

However, there is missing data for July 2022, which makes it difficult to assess the trend for that year. In July 2023, the inventory turnover ratio surged to 74.69, demonstrating a substantial increase in the rate at which Guidewire Software was selling and replacing its inventory. This suggests that the company was managing its inventory exceptionally well and minimizing excess stock.

In the most recent data available, for July 2024, the inventory turnover ratio decreased to 44.14. While this ratio is lower than the previous year, it still indicates a healthy turnover rate for inventory. Overall, the trend in the inventory turnover ratios of Guidewire Software Inc reflects efficient inventory management practices, with the company achieving high turnover rates in most of the years analyzed.