Guidewire Software Inc (GWRE)

Payables 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
Cost of revenue (ttm) US$ in thousands 450,406 430,726 418,367 406,530 397,136 398,337 408,458 419,115 447,130 469,593 474,545 467,839 442,249 413,626 392,167 381,627 375,054 362,745 356,432 348,126
Payables US$ in thousands 28,797 28,952 24,921 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
Payables turnover 15.64 14.88 16.79 12.95 26.11 16.94 18.57 21.82 12.91 13.20 12.48 11.23 10.94 13.67 15.90 13.93 13.48 14.42 15.11 15.93

July 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $450,406K ÷ $28,797K
= 15.64

The payables turnover ratio for Guidewire Software Inc. exhibits notable fluctuations over the examined periods, reflecting shifts in the company's efficiency in settling its accounts payable.

From October 2020 through October 2021, the ratio remained relatively stable, fluctuating within a narrow range from approximately 13.48 to 15.93. This stability suggests a consistent pace in accounts payable management during this interval.

Starting in late 2021 and into early 2022, the ratio experienced slight increases, with values approaching nearly 16 by January 2022. Such increments may indicate marginal improvements in payables management or shorter settlement cycles during this period.

However, from mid-2022 onward, a downward trend is observable. The ratio declined to its lowest point around 10.94 in July 2022, implying a lengthening of payment periods or a potential slowdown in settling liabilities. Post-2022, the ratio generally trended upward, peaking at approximately 26.11 in July 2024, which signifies an acceleration in payable settlements or a shorter duration in paying suppliers.

In the most recent periods, the ratio decreased again to roughly 12.95 in October 2024 before rising slightly to 16.79 in January 2025. These fluctuations may reflect strategic changes in payment policies, working capital management, or operational adjustments.

Overall, the payables turnover ratio demonstrates considerable variability, with periods of both rapid and slow settlement cycles. The sharp increase observed in July 2024 suggests a significant shift towards more prompt payments, while subsequent declines could indicate adjustments in operational priorities or external factors affecting payment practices.