Guidewire Software Inc (GWRE)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.77 | 3.23 | 2.65 | 2.66 | 1.55 | 1.53 | 3.45 | 3.72 | 2.95 | 3.65 | 3.66 | 3.73 | 3.71 | 4.45 | 4.66 | 5.29 | 4.51 | 6.10 | 6.50 | 7.27 |
July 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,507,420K ÷ $544,802K
= 2.77
The current ratio of Guidewire Software Inc exhibits a general declining trend over the observed period, indicating a gradual decrease in the company's short-term liquidity position. At the start of the analyzed timeframe, on October 31, 2020, the current ratio was notably high at 7.27, suggesting a strong ability to cover current liabilities with current assets. Over the subsequent years, the ratio steadily declined, reaching a low of approximately 1.53 on April 30, 2024. During this period, the ratio remained above 1, which generally signals that current assets continue to surpass current liabilities, albeit with narrowing margins.
Following this trough, there was a modest recovery, with the ratio increasing to 2.66 by October 31, 2024, and fluctuating around that level through early 2025. Despite short-term fluctuations, the ratio remains below the initial peak observed in 2020, which may reflect strategic shifts in working capital management, changes in liquidity reserves, or adjustments in current liabilities.
Overall, the trend indicates that while Guidewire Software Inc has experienced a significant reduction in its short-term liquidity buffer over the past few years, its current ratio still remains above 1 as of the latest reported periods. This suggests that the company retains the capacity to cover its short-term obligations, but the narrowing margin warrants attention to liquidity management and potential implications for financial stability in the face of unforeseen short-term expenses or economic shifts.