Guidewire Software Inc (GWRE)

Total asset turnover

		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
Revenue (ttm)	US$ in thousands	1,039,477	982,300	952,197	919,218	910,947	898,831	870,547	857,475	826,697	794,619	779,718	746,444	722,096	726,143	740,463	744,838	738,408	725,792	694,239	693,064
Total assets	US$ in thousands	2,596,700	2,226,290	2,040,020	2,013,520	1,919,600	2,027,890	1,916,530	2,003,950	1,948,510	2,266,900	2,157,340	2,183,620	2,178,350	2,321,840	2,249,980	2,335,730	2,338,960	2,364,850	2,208,870	2,221,590
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

October 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,039,477K ÷ $2,596,700K
= 0.40

The total asset turnover ratio measures how efficiently a company utilizes its assets to generate revenue. For Guidewire Software Inc, the total asset turnover ratio has shown a steady increase over the years, starting at 0.31 in January 2020 and reaching 0.40 in October 2024. This indicates that the company has been improving its ability to generate sales revenue relative to the value of its assets.

A higher total asset turnover ratio suggests that Guidewire Software Inc is effectively using its assets to drive sales, which can be a positive sign of operational efficiency and effective asset management. The consistent improvement in this ratio over time reflects positively on the company's financial performance and its ability to generate revenue from its asset base.

It is important for investors and stakeholders to monitor total asset turnover to assess how efficiently Guidewire Software Inc is utilizing its assets to generate sales and to evaluate the company's operational efficiency and overall financial health.