Guidewire Software Inc (GWRE)
Total asset turnover
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,202,460 | 980,497 | 905,341 | 812,614 | 743,267 |
| Total assets | US$ in thousands | 2,721,100 | 2,226,290 | 2,027,890 | 2,266,900 | 2,321,840 |
| Total asset turnover | 0.44 | 0.44 | 0.45 | 0.36 | 0.32 |
July 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,202,460K ÷ $2,721,100K
= 0.44
The total asset turnover ratio for Guidewire Software Inc has demonstrated a generally upward trend over the observed period, reflecting an improvement in the company’s efficiency in utilizing its assets to generate revenue. Specifically, on July 31, 2021, the ratio was 0.32, indicating that for every dollar of assets, the company generated approximately 32 cents in revenue. By July 31, 2022, this ratio increased to 0.36, suggesting a modest enhancement in asset utilization.
The upward trajectory continued more markedly by July 31, 2023, reaching 0.45, which indicates a more efficient use of assets in generating sales, with nearly 45 cents per dollar of assets. In subsequent years, the ratio stabilized around 0.44, with shares on July 31, 2024, and July 31, 2025, maintaining this level.
Overall, the company’s improving total asset turnover ratio over this three-year span signals an ongoing trend towards greater operational efficiency. This may be attributable to strategic initiatives aimed at optimizing asset management or expanding revenue streams without proportional increases in asset base. The slight stabilization in the ratio after 2023 suggests that the efficiency gains have plateaued at a high level, or that the company has maintained consistent asset utilization efficiency during these years.