Guidewire Software Inc (GWRE)
Return on assets (ROA)
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 69,804 | -6,103 | -111,855 | -180,431 | -66,507 |
| Total assets | US$ in thousands | 2,721,100 | 2,226,290 | 2,027,890 | 2,266,900 | 2,321,840 |
| ROA | 2.57% | -0.27% | -5.52% | -7.96% | -2.86% |
July 31, 2025 calculation
ROA = Net income ÷ Total assets
= $69,804K ÷ $2,721,100K
= 2.57%
The analysis of Guidewire Software Inc.'s Return on Assets (ROA) over the specified period reveals notable trends and changes. As of July 31, 2021, the company's ROA was recorded at -2.86%, indicating a loss relative to its assets during that fiscal year. This negative ROA persisted into July 31, 2022, with a deeper decline to -7.96%, reflecting a deterioration in the company's efficiency in generating profit from its assets.
By July 31, 2023, the ROA slightly improved to -5.52%, suggesting a partial recovery or stabilization in operational performance, though it remained negative and indicative of unprofitability. The subsequent year, July 31, 2024, showed a significant positive shift in ROA to -0.27%, approaching break-even levels and signaling improved asset utilization and profitability prospects.
Looking forward to July 31, 2025, the ROA turns positive at 2.57%, marking a noteworthy turnaround and the first indication over this period of actual profit generation relative to total assets. This progression from negative to positive ROA over the four-year span underscores an evolving trend towards improved operational efficiency and profitability, culminating in a period of sustainable asset utilization in the most recent fiscal year analyzed.