Guidewire Software Inc (GWRE)

Payables turnover

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
Cost of revenue (ttm) US$ in thousands 795,340 774,915 765,221 776,232 782,508 817,635 834,980 832,332 825,694 786,225 744,825 705,761 678,512 658,021 637,592 625,525 613,521 600,190 525,487 457,293
Payables US$ in thousands 31,394 15,209 23,514 21,999 19,210 34,627 35,578 38,025 41,649 40,440 30,257 24,661 27,396 27,830 25,162 23,593 21,855 22,634 18,348 25,988
Payables turnover 25.33 50.95 32.54 35.28 40.73 23.61 23.47 21.89 19.83 19.44 24.62 28.62 24.77 23.64 25.34 26.51 28.07 26.52 28.64 17.60

October 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $795,340K ÷ $31,394K
= 25.33

Guidewire Software Inc's payables turnover has shown some fluctuations over the periods provided in the data. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the amount of purchases made on credit to the average accounts payable during a specific period.

From January 31, 2020, to October 31, 2024, the payables turnover ratio ranged from a low of 17.60 to a high of 50.95. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly, which may be a sign of good financial health. Conversely, a lower ratio could suggest that the company is taking longer to settle its payables.

In analyzing the trend of Guidewire Software Inc's payables turnover, we observe that the ratio generally increased from the beginning of the data series, peaking at 50.95 on July 31, 2024, before decreasing in the subsequent periods. The significant fluctuations in the payables turnover ratio could be attributed to changes in the company's payment terms with suppliers, changes in purchasing patterns, or other operational factors impacting accounts payable management.

It would be advisable to further investigate the reasons behind the fluctuations in the payables turnover ratio to assess the effectiveness of Guidewire Software Inc's accounts payable management and its impact on the company's overall financial performance and liquidity.