Guidewire Software Inc (GWRE)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 41,068 | 21,785 | 621 | -23,512 | -52,573 | -56,792 | -97,912 | -108,718 | -149,490 | -187,794 | -192,382 | -208,623 | -199,447 | -167,322 | -151,744 | -139,357 | -105,584 | -61,159 | -39,933 | -30,893 |
| Total assets | US$ in thousands | 2,721,100 | 2,488,070 | 2,542,790 | 2,596,700 | 2,226,290 | 2,040,020 | 2,013,520 | 1,919,600 | 2,027,890 | 1,916,530 | 2,003,950 | 1,948,510 | 2,266,900 | 2,157,340 | 2,183,620 | 2,178,350 | 2,321,840 | 2,249,980 | 2,335,730 | 2,338,960 |
| Operating ROA | 1.51% | 0.88% | 0.02% | -0.91% | -2.36% | -2.78% | -4.86% | -5.66% | -7.37% | -9.80% | -9.60% | -10.71% | -8.80% | -7.76% | -6.95% | -6.40% | -4.55% | -2.72% | -1.71% | -1.32% |
July 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $41,068K ÷ $2,721,100K
= 1.51%
The operating return on assets (ROA) for Guidewire Software Inc. demonstrates a gradual trend toward improvement over the analyzed period. Starting from a negative value of -1.32% as of October 31, 2020, the metric steadily declined, reaching its lowest point at -10.71% on October 31, 2022. This indicates that the company's operating efficiency in generating profits from its assets was adversely affected during this interval, likely due to increased operating expenses, reduced revenues, or strategic restructuring impacting operational profitability.
From late 2022 onward, a consistent upward trajectory is observed, with the operating ROA improving to -4.86% as of January 31, 2024, and further approaching zero, reaching -0.91% by October 31, 2024. This positive shift suggests a period of operational recovery and enhanced efficiency in utilizing assets to generate operating income. The continued trend toward profitability is evidenced by the transition into positive territory, with the metric reaching 0.02% on January 31, 2025, and advancing further to 1.51% by July 31, 2025.
Overall, the data indicates that Guidewire Software Inc. has experienced significant operational challenges during the initial period, reflected in the negative ROA figures. However, recent performance signals a meaningful turnaround, characterized by steady improvement toward generating positive operating returns on its assets. This evolution highlights potential operational enhancements, strategic adjustments, or market conditions favorable to increased profitability.