Guidewire Software Inc (GWRE)

The payables turnover ratio for Guidewire Software Inc. has exhibited notable fluctuations over the period from July 31, 2021, to July 31, 2025. As of July 31, 2021, the ratio stood at 12.71, indicating that the company paid its accounts payable approximately 12.71 times during the fiscal year. This ratio decreased to 10.77 by July 31, 2022, suggesting a slight slowdown in paying suppliers or a potential increase in accounts payable balance relative to purchases.

However, a recovery is observed in the subsequent year, with the ratio increasing to 12.91 as of July 31, 2023, approaching the earlier levels and indicating a return to a relatively efficient payment cycle. A significant increase is then observed in the fiscal year ending July 31, 2024, when the payables turnover ratio sharply escalated to 26.11. This substantial rise could imply an accelerated payment process, possibly reflecting improved cash flow management, a change in credit terms, or a reduction in accounts payable relative to purchases.

By July 31, 2025, the ratio declines again to 15.64, remaining elevated compared to the initial levels, but indicating a moderation from the peak registered in the previous year. Overall, the trend demonstrates periods of both moderate and rapid payment activity, with the unusually high ratio in 2024 being particularly notable. The fluctuations suggest dynamic management of accounts payable and potentially changing supplier credit terms, which could influence the company's working capital management and liquidity position over this period.