Guidewire Software Inc (GWRE)
Cash ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 547,992 | 401,813 | 606,303 | 384,910 | 366,969 |
| Short-term investments | US$ in thousands | 455,576 | 396,872 | 369,865 | 734,517 | 766,527 |
| Total current liabilities | US$ in thousands | 837,635 | 373,261 | 337,518 | 300,314 | 225,198 |
| Cash ratio | 1.20 | 2.14 | 2.89 | 3.73 | 5.03 |
July 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($547,992K
+ $455,576K)
÷ $837,635K
= 1.20
The cash ratio of Guidewire Software Inc has shown a declining trend over the past five years, indicating a decrease in the company's ability to cover its short-term obligations with its cash and cash equivalents alone. As of July 31, 2020, the cash ratio stood at 5.03, demonstrating a strong liquidity position. However, by July 31, 2024, the cash ratio had decreased significantly to 1.20, suggesting a reduction in the company's liquidity and potentially raising concerns about its ability to meet immediate financial obligations solely from its cash reserves. It would be prudent for Guidewire Software Inc to closely monitor and manage its liquidity position to ensure financial stability and resilience in the face of unforeseen challenges.
Peer comparison
Jul 31, 2024