Guidewire Software Inc (GWRE)
Operating return on assets (Operating ROA)
| 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 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -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 | -23,886 | -47,145 | -37,312 |
| Total assets | US$ in thousands | 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 | 2,364,850 | 2,208,870 | 2,221,590 |
| Operating ROA | -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% | -1.01% | -2.13% | -1.68% |
October 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-23,512K ÷ $2,596,700K
= -0.91%
Guidewire Software Inc's operating return on assets (operating ROA) has been showing a decreasing trend over the years based on the provided data. From January 31, 2020, at -1.68%, the operating ROA deteriorated to -10.71% by October 31, 2022. This downward pattern continued till October 31, 2024, with the ratio improving slightly to -0.91%.
The negative operating ROA values indicate that Guidewire Software Inc is not generating sufficient operating income from its assets, highlighting potential inefficiencies in asset utilization and/or profitability. This trend suggests that the company may be facing challenges in generating profits relative to its asset base, which could impact its overall financial performance and sustainability.
Management should closely monitor and address the factors contributing to the declining operating ROA to improve operational efficiency, profitability, and overall financial health. Strategies may include enhancing cost management, optimizing asset allocation, and seeking growth opportunities to reverse the negative trend and drive long-term value creation for the company and its stakeholders.
Peer comparison
Oct 31, 2024