Guidewire Software Inc (GWRE)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,226,290 | 2,027,890 | 2,266,900 | 2,321,840 | 2,364,850 |
| Operating ROA | -2.36% | -7.37% | -8.80% | -4.55% | -1.01% |
July 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-52,573K ÷ $2,226,290K
= -2.36%
Guidewire Software Inc's operating return on assets (ROA) has experienced a downward trend over the past five years. In July 2020, the operating ROA was at -1.01%, indicating that the company generated a negative return from its operating activities relative to its assets. Over the next four years, the operating ROA continued to decline significantly to -4.55% in July 2021, -8.80% in July 2022, -7.37% in July 2023, and finally improving slightly to -2.36% in July 2024.
These negative operating ROA figures suggest that Guidewire Software Inc faced challenges in effectively utilizing its assets to generate operating profits during this period. It is crucial for the company to address the factors contributing to this decline in operating efficiency to improve its overall financial performance and return on investment for its shareholders.
Peer comparison
Jul 31, 2024