Guidewire Software Inc (GWRE)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 69,804 | 34,612 | -16,857 | 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 |
| 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 |
| ROA | 2.57% | 1.39% | -0.66% | 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% |
July 31, 2025 calculation
ROA = Net income (ttm) ÷ 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 a trajectory characterized by initial negative values that gradually improved toward positive territory. From October 31, 2020, through July 31, 2021, the ROA remained negative, ranging from -1.39% to -2.86%, indicating that the company was generating losses relative to its assets during this timeframe. This pattern persisted into late 2021 and early 2022, with the ROA deepening to a low of -10.19% on October 31, 2022, suggesting increasing inefficiency or losses in asset utilization.
Subsequent quarters into 2023 show some stabilization as the ROA moved less negative, reaching -8.33% in January and improving to -5.52% by July 2023. The trend continued into late 2023 and early 2024, where a noteworthy shift occurred: the ROA transitioned from negative to positive, with the figure reaching 1.16% on October 31, 2024, marking a significant turnaround in asset profitability. This positive turn persisted into early 2025, with ROA values of 1.39% in April and 2.57% by July 2025.
The progression indicates that Guidewire Software Inc. experienced a period of substantial profitability challenges, with persistent negative ROA spanning over three years. However, recent data reflects a marked improvement, culminating in positive ROA figures, which suggest enhanced efficiency in asset utilization and potentially improved profitability outlooks. The shift from negative to positive ROA signifies a critical inflection point in the company's financial performance, with future trends likely contingent on sustaining and further amplifying these gains.