Guidewire Software Inc (GWRE)
Operating profit margin
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -52,573 | -149,490 | -199,447 | -105,584 | -23,886 |
| Revenue | US$ in thousands | 982,300 | 899,523 | 794,619 | 726,143 | 725,792 |
| Operating profit margin | -5.35% | -16.62% | -25.10% | -14.54% | -3.29% |
July 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-52,573K ÷ $982,300K
= -5.35%
Guidewire Software Inc's operating profit margin has witnessed a downward trend over the past five years. In July 2020, the operating profit margin was at -3.29%, indicating that the company was generating a negative profit margin from its core operations. This trend continued with a steeper decline, reaching -14.54% in July 2021, -25.10% in July 2022, and -16.62% in July 2023.
However, there was a slight improvement in July 2024 with the operating profit margin narrowing to -5.35%. While the company has shown some progress in reducing its operating losses, the margins still remain in negative territory.
Guidewire Software Inc's declining operating profit margins suggest challenges in managing operating expenses relative to revenue generated. It may indicate inefficiencies in cost control, pricing strategies, or potential declines in sales volume. Investors and stakeholders may monitor these margins closely to assess the company's operational efficiency and profitability prospects.
Peer comparison
Jul 31, 2024