Guidewire Software Inc (GWRE)
Working capital turnover
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,202,459 | 1,137,404 | 1,084,574 | 1,035,991 | 980,497 | 958,940 | 925,752 | 917,466 | 905,341 | 879,982 | 869,940 | 841,962 | 812,614 | 797,450 | 763,970 | 739,399 | 743,267 | 757,506 | 761,703 | 755,099 |
| Total current assets | US$ in thousands | 1,507,420 | 1,312,970 | 1,478,130 | 1,637,290 | 1,295,530 | 1,081,510 | 1,060,630 | 976,798 | 1,099,600 | 1,006,500 | 1,006,260 | 943,556 | 1,252,700 | 1,056,270 | 1,077,580 | 1,080,660 | 1,355,280 | 1,307,950 | 1,368,960 | 1,349,100 |
| Total current liabilities | US$ in thousands | 544,802 | 405,914 | 558,681 | 615,237 | 837,635 | 704,807 | 307,076 | 262,375 | 373,261 | 275,428 | 275,209 | 252,764 | 337,518 | 237,098 | 231,151 | 204,165 | 300,314 | 214,297 | 210,723 | 185,623 |
| Working capital turnover | 1.25 | 1.25 | 1.18 | 1.01 | 2.14 | 2.55 | 1.23 | 1.28 | 1.25 | 1.20 | 1.19 | 1.22 | 0.89 | 0.97 | 0.90 | 0.84 | 0.70 | 0.69 | 0.66 | 0.65 |
July 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,202,459K ÷ ($1,507,420K – $544,802K)
= 1.25
The working capital turnover ratio of Guidewire Software Inc exhibits a general upward trend over the period from October 2020 to July 2025, indicating increased efficiency in utilizing working capital to generate revenue. Starting at 0.65 in October 2020, the ratio gradually increased, reaching 1.28 by October 2023. This progression suggests that the company has been improving its operational efficiencies and management of working capital over this timeframe.
Notably, there was a significant spike in the ratio during the period from April 2024 to October 2024. The ratio surged from 2.55 in April 2024 to 2.14 in July 2024 before decreasing to 1.01 in October 2024. This fluctuation indicates substantial changes in either working capital management or revenue generation efficiency during this period, possibly reflecting adjustments in operational strategies or seasonal variations.
Following this decline, the ratio experienced a modest recovery, moving from 1.01 in October 2024 up to 1.25 by July 2025. The sustained levels above 1.0 after October 2023 suggest that the company has generally maintained efficient use of its working capital relative to its revenues, though recent fluctuations signal some variability in operational efficiency.
Overall, the trend demonstrates improving working capital efficiency over the span analyzed, punctuated by periods of volatility potentially associated with strategic or market-specific factors. Continued monitoring of these fluctuations could provide further insights into the underlying operational and financial dynamics of Guidewire Software Inc.