Guidewire Software Inc (GWRE)

Receivables turnover

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Revenue	US$ in thousands	982,300	899,523	794,619	726,143	725,792
Receivables	US$ in thousands	137,339	151,034	143,797	104,068	114,242
Receivables turnover		7.15	5.96	5.53	6.98	6.35

July 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $982,300K ÷ $137,339K
= 7.15

The receivables turnover ratio for Guidewire Software Inc has shown fluctuations over the past five years. As of July 31, 2020, the ratio was 6.35, indicating that the company collected its outstanding receivables approximately 6.35 times during that fiscal year.

Subsequently, there was a notable improvement in the receivables turnover ratio to 6.98 as of July 31, 2021. This suggests that Guidewire Software Inc became more efficient in collecting its accounts receivables compared to the previous year.

However, there was a decline in the receivables turnover ratio to 5.53 as of July 31, 2022, signaling that the company took longer to collect its receivables during that period. This decrease in efficiency may be a cause for further analysis by stakeholders.

The ratio improved again to 5.96 as of July 31, 2023, showing a slight increase in the efficiency of receivables collection. This improvement indicates that the company managed its accounts receivable more effectively compared to the previous year.

As of July 31, 2024, the receivables turnover ratio increased to 7.15, reaching its highest point in the five-year period. This suggests that Guidewire Software Inc enhanced its ability to swiftly convert its receivables into cash during that fiscal year.

Overall, the fluctuations in the receivables turnover ratio highlight the importance of monitoring and managing accounts receivable efficiently to optimize cash flows and maintain financial health.