Guidewire Software Inc (GWRE)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 60.56% | 59.39% | 58.87% | 56.28% | 54.71% | 50.98% | 47.92% | 46.91% | 46.08% | 47.47% | 51.96% | 52.67% | 52.50% | 53.65% | 53.31% | 54.41% | 55.11% | 55.70% | 53.80% | 53.92% |
| Operating profit margin | -2.26% | -5.35% | -5.96% | -10.65% | -11.93% | -16.63% | -21.57% | -22.44% | -25.24% | -25.10% | -21.46% | -20.33% | -19.30% | -14.54% | -8.26% | -5.36% | -4.18% | -3.29% | -6.79% | -5.38% |
| Pretax margin | 1.40% | -2.73% | -3.15% | -7.84% | -9.58% | -14.92% | -21.41% | -23.72% | -29.86% | -28.91% | -25.52% | -22.84% | -19.63% | -14.36% | -6.63% | -5.47% | -4.54% | -3.35% | -7.20% | -3.84% |
| Net profit margin | 2.90% | -0.62% | -1.12% | -5.52% | -7.64% | -12.44% | -17.82% | -19.47% | -24.01% | -22.71% | -19.29% | -17.37% | -13.52% | -9.16% | -3.61% | -2.83% | -4.39% | -3.75% | -6.19% | -2.96% |
Guidewire Software Inc's profitability ratios have shown some fluctuations over the years. The gross profit margin has generally been above 50%, indicating the company is able to generate a healthy profit after accounting for the cost of goods sold. However, there was a significant decrease in the gross profit margin in the most recent periods, which may warrant further investigation.
The operating profit margin and pretax margin have generally been negative, indicating that the company has been operating at a loss before and after accounting for taxes. The margins have shown improvement in the most recent periods, with the operating profit margin and pretax margin moving closer to breakeven or even slightly positive in some instances.
The net profit margin, which represents the percentage of revenue that translates into profit after all expenses have been deducted, has also been negative for most periods. Like the other profitability ratios, the net profit margin has shown improvement in the most recent periods, with the company approaching breakeven or even achieving a small profit in the latest period.
Overall, while Guidewire Software Inc has faced challenges in profitability, there are positive signs of improvement in recent periods. Monitoring these ratios closely will be important to assess the company's financial health and performance going forward.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 1.16% | -0.27% | -0.52% | -2.52% | -3.63% | -5.52% | -8.09% | -8.33% | -10.19% | -7.96% | -6.97% | -5.94% | -4.48% | -2.86% | -1.19% | -0.90% | -1.39% | -1.15% | -1.95% | -0.92% |
| Return on total capital | -1.21% | -3.92% | -4.42% | -7.79% | -9.02% | -9.36% | -15.71% | -15.77% | -17.60% | -13.74% | -14.12% | -10.25% | -9.30% | -6.83% | -3.03% | -2.43% | -1.86% | -1.12% | -2.97% | -2.34% |
| Return on equity (ROE) | 2.37% | -0.45% | -0.83% | -4.04% | -5.77% | -9.33% | -12.98% | -13.69% | -16.75% | -12.43% | -12.69% | -8.76% | -6.51% | -4.30% | -1.72% | -1.28% | -1.95% | -1.64% | -2.71% | -1.29% |
Guidewire Software Inc's profitability ratios show a deteriorating trend over the last few years.
1. Operating Return on Assets (Operating ROA): The Operating ROA has been consistently negative, declining from -1.68% in January 2020 to -0.91% in October 2024. This indicates that the company's operational efficiency in generating profits from its assets has been weakening.
2. Return on Assets (ROA): The ROA, which considers both operating and non-operating income, also shows a downward trajectory from -0.92% in January 2020 to -0.91% in October 2024. This suggests that the overall profitability in relation to total assets has been declining.
3. Return on Total Capital: The Return on Total Capital has been negative throughout the period, falling from -2.34% in January 2020 to -1.21% in October 2024. This signifies that the company is not effectively utilizing its total capital to generate returns for shareholders.
4. Return on Equity (ROE): The ROE has experienced a similar downward trend, decreasing from -1.29% in January 2020 to 2.37% in October 2024. This implies that the company's ability to generate profits from shareholders' equity has been diminishing.
In summary, Guidewire Software Inc's profitability ratios indicate a concerning trend of declining profitability and efficiency in utilizing assets and capital, which suggests challenges in sustaining and growing its earnings in the future.