Guidewire Software Inc (GWRE)
Working capital 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 current assets | US$ in thousands | 1,507,420 | 1,295,530 | 1,099,600 | 1,252,700 | 1,355,280 |
| Total current liabilities | US$ in thousands | 544,802 | 837,635 | 373,261 | 337,518 | 300,314 |
| Working capital turnover | 1.25 | 2.14 | 1.25 | 0.89 | 0.70 |
July 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,202,460K ÷ ($1,507,420K – $544,802K)
= 1.25
The working capital turnover ratio for Guidewire Software Inc demonstrates a notable upward trend over the analyzed period from July 31, 2021, to July 31, 2025. Specifically, the ratio increased from 0.70 in 2021 to 0.89 in 2022, reflecting a moderate improvement in the efficiency with which the company utilizes its working capital to generate sales. The upward trajectory continues into 2023 with a substantial rise to 1.25, indicating enhanced operational efficiency. This positive momentum accelerates further in 2024, with the ratio reaching 2.14, more than doubling the value from the previous year, which suggests a significant improvement in working capital utilization. However, in 2025, the ratio declines back to 1.25, falling below the peak observed in 2024 but remaining higher than the levels seen in 2021–2023. Overall, these movements indicate a period of increasing operational efficiency in managing working capital relative to sales, with a temporary reduction in 2025.