Guidewire Software Inc (GWRE)

Return on assets (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
Net income (ttm)	US$ in thousands	30,107	-6,103	-10,642	-50,732	-69,608	-111,855	-155,105	-166,981	-198,473	-180,431	-150,433	-129,622	-97,593	-66,507	-26,700	-21,105	-32,397	-27,198	-42,968	-20,511
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
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%

October 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $30,107K ÷ $2,596,700K
= 1.16%

Guidewire Software Inc's return on assets (ROA) has experienced fluctuations over the reported periods. The ROA started in negative territory in January 2020 at -0.92% and declined further by April 2022 to -6.97%. There was a notable decrease in ROA to -10.19% by October 2022, signaling potential challenges in generating profits from its assets efficiently during that period.

However, there was a significant improvement in ROA by October 2024, where it turned positive to 1.16%, indicating that the company was able to generate a profit from its assets during that period. The positive ROA reflects improved asset efficiency and profitability.

Overall, the analysis suggests that Guidewire Software Inc faced difficulties in generating returns from its assets in the earlier periods but showed a positive turnaround by October 2024. Monitoring future ROA trends will be essential to assess the company's efficiency in utilizing its assets to generate profits.