Guidewire Software Inc (GWRE)
Profitability ratios
Return on sales
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.39% | 50.94% | 47.47% | 53.65% | 55.70% |
| Operating profit margin | -5.35% | -16.62% | -25.10% | -14.54% | -3.29% |
| Pretax margin | -2.73% | -14.91% | -28.91% | -14.36% | -3.35% |
| Net profit margin | -0.62% | -12.43% | -22.71% | -9.16% | -3.75% |
Guidewire Software Inc's gross profit margin has shown some fluctuation over the past five years, starting at 55.70% in July 2020 and dipping to 47.47% in July 2022 before increasing to 59.39% in July 2024. This indicates the company's ability to generate profits after accounting for the cost of goods sold.
However, the operating profit margin, which reflects the company's profitability from core operations, has been negative throughout the period, ranging from -3.29% in July 2020 to -5.35% in July 2024. This suggests that the company has been experiencing losses at the operating level.
Similarly, the pretax margin and net profit margin have also been negative, with the pretax margin ranging from -3.35% in July 2020 to -2.73% in July 2024, and the net profit margin ranging from -3.75% in July 2020 to -0.62% in July 2024. These margins indicate that the company has been unable to generate profits after accounting for all expenses and taxes.
Overall, Guidewire Software Inc's profitability ratios paint a picture of a company that has been struggling to achieve profitability in recent years, with consistent negative margins across the board. This may raise concerns about the company's operational efficiency and financial performance.
Return on investment
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.36% | -7.37% | -8.80% | -4.55% | -1.01% |
| Return on assets (ROA) | -0.27% | -5.52% | -7.96% | -2.86% | -1.15% |
| Return on total capital | -3.92% | -9.36% | -13.74% | -6.83% | -1.44% |
| Return on equity (ROE) | -0.45% | -9.33% | -12.43% | -4.30% | -1.64% |
Guidewire Software Inc's profitability ratios indicate a declining trend over the years.
- The Operating return on assets (Operating ROA) decreased from -1.01% in July 2020 to -8.80% in July 2022, showing a deterioration in the company's ability to generate profit from its operating assets. Though there was a slight improvement in July 2024 to -2.36%, the metric remains negative.
- Return on assets (ROA) also exhibited a downward trajectory, dropping from -1.15% in July 2020 to -7.96% in July 2022. The ROA improved marginally in July 2024 to -0.27%, but it still indicates that the company's profitability relative to its total assets is weak.
- Return on total capital decreased from -1.44% in July 2020 to -13.74% in July 2022, highlighting a significant decline in the company's ability to generate returns from its total invested capital. However, there was a slight recovery in July 2024 to -3.92%.
- Return on equity (ROE) witnessed a similar downward trend, falling from -1.64% in July 2020 to -12.43% in July 2022. The ROE improved to -0.45% in July 2024, but it still indicates that the company's ability to generate profits from shareholders' equity is not strong.
Overall, the declining trend in profitability ratios suggests that Guidewire Software Inc may be facing challenges in generating returns for its assets, capital, and equity, raising concerns about its overall profitability and financial performance.