Guidewire Software Inc (GWRE)
Quick 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 | 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 |
| Receivables | US$ in thousands | 272,268 | 314,221 | 237,482 | 226,904 | 242,177 | 229,875 | 219,208 | 202,314 | 256,486 | 257,234 | 227,940 | 179,015 | 227,450 | 201,254 | 196,023 | 178,732 | 192,916 | 183,062 | 187,220 | 164,628 |
| 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 |
| Quick ratio | 2.61 | 3.04 | 2.52 | 2.54 | 1.49 | 1.44 | 3.25 | 3.49 | 2.83 | 3.43 | 3.43 | 3.50 | 3.57 | 4.26 | 4.40 | 5.00 | 4.37 | 5.93 | 6.33 | 7.08 |
July 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($697,902K
+ $451,541K
+ $272,268K)
÷ $544,802K
= 2.61
The analysis of Guidewire Software Inc’s quick ratio over the specified periods reveals a declining trend from October 2020 through April 2024, followed by some fluctuation thereafter. Starting at a high of 7.08 in October 2020, the quick ratio gradually decreased over the subsequent quarters, reaching its lowest point of 1.44 in April 2024. This steady decline suggests a reduction in the company's short-term liquidity and its ability to cover immediate liabilities with its most liquid assets, excluding inventories.
Post-April 2024, the quick ratio exhibits increased volatility, rising to 2.54 in October 2024 and further to 3.04 by April 2025. This resurgence indicates a temporary improvement in short-term liquidity positions or adjustments in current asset composition. The fluctuations imply that the company’s liquidity profile has remained somewhat unstable, with periods of tightening and subsequent easing.
Overall, despite the downward trajectory from late 2020 through early 2024, the quick ratio remains above 1.0 in most recent periods, suggesting that Guidewire Software has maintained a baseline capability to meet short-term obligations using its liquid assets. The observed pattern reflects a tendency towards reduced liquidity efficiency over time but still indicates a buffer for immediate liabilities in current periods.