Guidewire Software Inc (GWRE)
Working capital 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 current assets | US$ in thousands | 1,295,530 | 1,099,600 | 1,252,700 | 1,355,280 | 1,343,220 |
| Total current liabilities | US$ in thousands | 837,635 | 373,261 | 337,518 | 300,314 | 225,198 |
| Working capital turnover | 2.15 | 1.24 | 0.87 | 0.69 | 0.65 |
July 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $982,300K ÷ ($1,295,530K – $837,635K)
= 2.15
Guidewire Software Inc's working capital turnover has shown a consistent upward trend over the past five years. The ratio increased from 0.65 in July 2020 to 2.15 in July 2024, indicating a significant improvement in how efficiently the company is managing its working capital to generate revenue. This suggests that Guidewire Software has been able to effectively utilize its current assets to support its operations and sales growth. Overall, the increasing trend in working capital turnover reflects positively on the company's operational efficiency and financial performance.
Peer comparison
Jul 31, 2024