Guidewire Software Inc (GWRE)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 697,902 | 510,321 | 697,488 | 823,562 | 547,992 | 359,600 | 349,989 | 301,419 | 401,813 | 266,615 | 274,899 | 263,163 | 606,303 | 326,861 | 257,378 | 239,620 | 384,910 | 284,448 | 331,387 | 293,836 |
| Short-term investments | US$ in thousands | 451,541 | 410,116 | 471,473 | 514,767 | 455,576 | 422,691 | 427,634 | 411,528 | 396,872 | 421,202 | 439,833 | 442,023 | 369,865 | 481,086 | 562,753 | 602,162 | 734,517 | 803,885 | 814,845 | 856,376 |
| 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 |
| Cash ratio | 2.11 | 2.27 | 2.09 | 2.18 | 1.20 | 1.11 | 2.53 | 2.72 | 2.14 | 2.50 | 2.60 | 2.79 | 2.89 | 3.41 | 3.55 | 4.12 | 3.73 | 5.08 | 5.44 | 6.20 |
July 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($697,902K
+ $451,541K)
÷ $544,802K
= 2.11
The cash ratio of Guidewire Software Inc. exhibits notable fluctuations over the analyzed period. Starting at a high of 6.20 as of October 31, 2020, the ratio demonstrates a downward trend with intermittent minor recoveries. By October 31, 2021, the ratio declines to 4.12, and further decreases to 2.79 by October 31, 2022. This downward trajectory continues through the subsequent periods, reaching a low of 1.11 on April 30, 2024, indicating a significant reduction in the company's cash holdings relative to its current liabilities.
Following this trough, a modest increase is observed, with the ratio rising to 2.18 by October 31, 2024, and slightly fluctuating around 2.09 to 2.27 through the latest dates. Notably, despite some minor recoveries, the cash ratio remains relatively low compared to its initial values, reflecting a diminished buffer of cash relative to short-term liabilities.
Overall, the pattern suggests that Guidewire Software Inc. has experienced a considerable decrease in its cash ratio over the analyzed period, indicating a potential reduction in liquidity or a strategic change in cash management practices. This downward trend warrants attention as it may impact the company's ability to cover immediate liabilities solely through cash resources.