Guidewire Software Inc (GWRE)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 16.37 | — | — | — | 9.07 | 11.30 | — | — | — | — | 42.76 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 82.65 | 100.84 | 79.92 | 79.94 | 90.15 | 87.50 | 86.43 | 80.49 | 103.41 | 106.70 | 95.64 | 77.61 | 102.16 | 92.12 | 93.65 | 88.23 | 94.74 | 88.21 | 89.71 | 79.58 |
| Number of days of payables | days | 23.34 | 24.53 | 21.74 | 28.19 | 13.98 | 21.55 | 19.66 | 16.73 | 28.27 | 27.65 | 29.25 | 32.49 | 33.38 | 26.70 | 22.95 | 26.20 | 27.08 | 25.32 | 24.16 | 22.91 |
| Cash conversion cycle | days | 59.31 | 76.30 | 58.18 | 51.76 | 92.54 | 65.95 | 66.77 | 63.76 | 84.21 | 90.34 | 66.39 | 45.11 | 68.79 | 65.42 | 113.46 | 62.03 | 67.65 | 62.89 | 65.55 | 56.66 |
July 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 82.65 – 23.34
= 59.31
The cash conversion cycle (CCC) of Guidewire Software Inc. over the period from October 2020 to July 2025 exhibits notable fluctuations, reflecting changes in the company's operational efficiency and working capital management.
Initially, the CCC demonstrated relative stability, averaging around 56.66 days in October 2020, with slight increases observed through January and April 2021, reaching approximately 62.89 days by April 2021 and slightly rising to 67.65 days in July 2021. The cycle then showed a modest decline to 62.03 days in October 2021.
However, a significant increase occurred in January 2022, with the CCC rising sharply to 113.46 days, indicating possible delays or inefficiencies in receivables collection, inventory management, or payment cycles during that quarter. This peak was followed by a reduction to 65.42 days in April 2022, suggesting an improvement in operational efficiencies.
From mid-2022 onwards, the CCC fluctuated within a narrower range, averaging approximately 65 to 70 days, with a notable low of 45.11 days in October 2022, reflecting enhanced cash flow management. Despite some increases in subsequent periods, the cycle remained relatively moderate, with values such as 66.39 days in January 2023, 90.34 days in April 2023, and 84.21 days in July 2023, indicating episodic delays or changes in operating terms.
In the most recent periods, the CCC has shown signs of stabilization, recording 63.76 days in October 2023, and subsequent figures such as 66.77 days in January 2024 and around 65 to 75 days in the following periods. Notably, there was a spike to 92.54 days in July 2024, but this declined again to 51.76 days in October 2024, and subsequently increased to 58.18 days in January 2025, with a moderate rise to 76.30 days in April 2025 and a decrease to 59.31 days in July 2025.
Overall, the trend indicates periods of operational efficiency improvements interspersed with episodes of cycle elongation, potentially driven by changes in receivables collection timelines, payment terms, or other working capital factors. The cyclical nature of these fluctuations suggests that the company's cash conversion cycle, while variable, tends to stabilize around the 50 to 70-day range during most periods, with occasional deviations likely tied to strategic or operational adjustments.