Guidewire Software Inc (GWRE)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,268,030 | 1,342,730 | 1,285,370 | 1,256,110 | 1,205,650 | 1,199,470 | 1,195,110 | 1,220,170 | 1,185,160 | 1,451,660 | 1,185,160 | 1,480,470 | 1,498,380 | 1,544,890 | 1,556,480 | 1,644,660 | 1,659,860 | 1,656,770 | 1,586,010 | 1,592,560 |
| 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% |
October 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $30,107K ÷ $1,268,030K
= 2.37%
Guidewire Software Inc has experienced fluctuating return on equity (ROE) figures over the past several years according to the provided data. The ROE started at -1.29% in January 2020 and continued to decline, reaching a low of -16.75% in October 2022. However, there was a turning point as the ROE improved to 2.37% in October 2024.
The negative ROE figures indicate that the company's net income was insufficient to generate returns for its shareholders, implying potential financial inefficiencies or operational challenges. The consistent negative trend until 2024 may have raised concerns about the company's profitability and ability to utilize shareholder equity effectively.
The positive ROE in October 2024 suggests a potential improvement in profitability and efficiency in utilizing shareholder funds. This positive change could indicate efforts taken by the company to enhance its financial performance and generate better returns for its shareholders.
Overall, the trend in Guidewire Software Inc's ROE reflects a mix of challenges and improvements in profitability and efficiency over the analyzed period. Further analysis of the company's financial performance and strategies would be necessary to determine the underlying reasons for the observed fluctuations in ROE.
Peer comparison
Oct 31, 2024