Guidewire Software Inc (GWRE)

Total asset 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
Total assets US$ in thousands 2,226,290 2,027,890 2,266,900 2,321,840 2,364,850
Total asset turnover 0.44 0.44 0.35 0.31 0.31

July 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $982,300K ÷ $2,226,290K
= 0.44

Guidewire Software Inc's total asset turnover ratio shows a consistent trend from July 31, 2020, to July 31, 2021, remaining at 0.31. However, there is a notable improvement in the ratio for the subsequent years, increasing to 0.35 on July 31, 2022, and further to 0.44 on both July 31, 2023, and July 31, 2024. This signifies an enhancement in the company's efficiency in generating revenue relative to its total assets over time. The increasing total asset turnover ratio indicates that Guidewire Software Inc is utilizing its assets more effectively to generate sales, reflecting positively on its operational efficiency and potentially its overall financial performance.