Guidewire Software Inc (GWRE)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 43.52 | — | — | — | 73.58 | 57.42 | — | — | — | — | 15.36 | — | — | — | — | — | — | — | — |
| Receivables turnover | 10.66 | 7.15 | 9.13 | 7.17 | 9.79 | 5.95 | 6.74 | 6.72 | 9.37 | 5.53 | 9.10 | 6.68 | 8.98 | 6.98 | 10.32 | 8.05 | 9.43 | 6.35 | 8.72 | 6.85 |
| 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 |
| Working capital turnover | 1.02 | 2.15 | 2.53 | 1.22 | 1.28 | 1.24 | 1.19 | 1.17 | 1.20 | 0.87 | 0.95 | 0.88 | 0.82 | 0.69 | 0.68 | 0.64 | 0.63 | 0.65 | 0.66 | 0.65 |
Inventory Turnover Ratio:
Guidewire Software Inc's inventory turnover ratio has shown improvement over the years, with a significant increase from 15.36 in January 2022 to 73.58 in July 2023. This indicates that the company is managing its inventory efficiently and selling its products at a faster rate during this period.
Receivables Turnover Ratio:
The receivables turnover ratio for Guidewire Software Inc has fluctuated over the years but generally remained within a reasonable range. It increased from 6.85 in January 2020 to 10.66 in October 2024, showing that the company is collecting its receivables more effectively in recent periods.
Payables Turnover Ratio:
Guidewire Software Inc's payables turnover ratio has been volatile, with some fluctuations observed across the years. Notably, there was a substantial increase from 19.83 in October 2022 to 50.95 in July 2024, indicating that the company is managing its payables more efficiently and taking longer to pay its outstanding bills.
Working Capital Turnover Ratio:
The working capital turnover ratio for Guidewire Software Inc has generally been increasing over the years, suggesting that the company is generating more revenue per dollar of working capital invested. The ratio rose from 0.65 in January 2020 to 2.15 in July 2024, demonstrating improved efficiency in utilizing its working capital.
Overall, analysis of activity ratios suggests that Guidewire Software Inc has been improving its operational efficiency in managing inventory, receivables, payables, and working capital turnover, which can be a positive indicator of the company's financial health and performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 8.39 | — | — | — | 4.96 | 6.36 | — | — | — | — | 23.76 | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 34.23 | 51.03 | 40.00 | 50.92 | 37.30 | 61.33 | 54.12 | 54.33 | 38.97 | 66.05 | 40.12 | 54.62 | 40.64 | 52.31 | 35.39 | 45.37 | 38.70 | 57.45 | 41.84 | 53.28 |
| Number of days of payables | days | 14.41 | 7.16 | 11.22 | 10.34 | 8.96 | 15.46 | 15.55 | 16.67 | 18.41 | 18.77 | 14.83 | 12.75 | 14.74 | 15.44 | 14.40 | 13.77 | 13.00 | 13.76 | 12.74 | 20.74 |
Guidewire Software Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its payables.
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand for Guidewire Software Inc have fluctuated over the periods provided.
- There was a notable decrease in the DOH from 23.76 days in January 2022 to 6.36 days in April 2023. This indicates that the company was able to manage its inventory more efficiently during this period.
- However, the DOH increased to 8.39 days in July 2024, suggesting a potential inefficiency in managing inventory during that quarter.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding metric shows how long it takes for the company to collect its accounts receivable.
- Guidewire Software Inc's DSO improved from 54.62 days in January 2022 to 37.30 days in October 2023, indicating a more efficient collection process during this period.
- However, there was a slight increase in DSO to 51.03 days in July 2024, which might suggest a slower collection of receivables in that quarter.
3. Number of Days of Payables:
- The number of days of payables metric reflects how long the company takes to pay its suppliers.
- Guidewire Software Inc's days of payables have shown some fluctuations but generally remained within a reasonable range over the periods analyzed.
- The trend shows a decrease in the number of days of payables from 20.74 days in January 2020 to 7.16 days in July 2024, potentially indicating improved liquidity management or negotiation terms with suppliers.
Overall, Guidewire Software Inc's activity ratios indicate varying levels of efficiency in managing inventory, collecting receivables, and paying payables over the periods provided. Investors and analysts may use these ratios to assess the company's operational performance and potential risks related to working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 18.83 | 17.73 | 17.30 | 16.68 | 16.48 | 16.49 | 16.24 | 10.92 | 10.46 | 9.84 | 9.74 | 9.14 | 8.72 | 9.07 | 9.66 | 10.19 | 10.95 | 11.13 | 10.61 | 10.39 |
| Total asset turnover | 0.40 | 0.44 | 0.47 | 0.46 | 0.47 | 0.44 | 0.45 | 0.43 | 0.42 | 0.35 | 0.36 | 0.34 | 0.33 | 0.31 | 0.33 | 0.32 | 0.32 | 0.31 | 0.31 | 0.31 |
Guidewire Software Inc's fixed asset turnover ratio has shown an increasing trend from January 2020 to October 2024. The ratio started at 10.39 in January 2020, peaked at 18.83 in October 2024, indicating that the company is generating more revenue from its fixed assets over time.
On the other hand, the total asset turnover ratio also increased during the same period, from 0.31 in January 2020 to 0.40 in October 2024. This suggests that Guidewire Software Inc is managing its total assets more efficiently to generate sales.
Overall, the company's long-term activity ratios demonstrate an improvement in asset utilization efficiency and productivity over the years, reflecting positively on its operational performance and ability to generate revenue from its asset base.