Guidewire Software Inc (GWRE)
Debt-to-capital ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 397,171 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,342,730 | 1,199,470 | 1,451,660 | 1,544,890 | 1,656,770 |
| Debt-to-capital ratio | 0.00 | 0.25 | 0.00 | 0.00 | 0.00 |
July 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,342,730K)
= 0.00
Based on the provided data, Guidewire Software Inc's debt-to-capital ratio has shown a consistent and low level of leverage from July 31, 2020, to July 31, 2022, where the ratio has been reported as 0.00, indicating that the company has been mainly relying on equity financing rather than debt to fund its operations and investments during those years.
However, there was a notable increase in the debt-to-capital ratio to 0.25 as of July 31, 2023, suggesting that Guidewire Software Inc started to utilize debt financing to a greater extent relative to its capital structure. This change could indicate a strategic shift in the company's financing mix or potentially a new capital-intensive project or acquisition on the horizon.
The debt-to-capital ratio returning to 0.00 as of July 31, 2024, may imply a temporary spike in debt usage in the previous year. Overall, Guidewire Software Inc's historical debt-to-capital ratio performance suggests a balanced approach to capital structure management with a preference for equity financing, except for the spike observed in 2023. It would be important to monitor future trends in this ratio to assess the company's evolving financial leverage and risk profile.
Peer comparison
Jul 31, 2024