Guidewire Software Inc (GWRE)

Debt-to-equity ratio

		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
Long-term debt	US$ in thousands	671,820	—	—	—	—	397,171	—	—	—	—	—	—	—	—	460,000	—	—	480,000	—	—
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
Debt-to-equity ratio		0.53	0.00	0.00	0.00	0.00	0.33	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.30	0.00	0.00	0.29	0.00	0.00

October 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $671,820K ÷ $1,268,030K
= 0.53

The debt-to-equity ratio of Guidewire Software Inc has been relatively low and stable over the past few years. As of October 31, 2024, the debt-to-equity ratio stood at 0.53, reflecting a moderate level of debt relative to equity. In the recent quarters leading up to October 2024, the ratio has fluctuated within a narrow range, with occasional spikes such as in July 2023 where it reached 0.33, suggesting periodic fluctuations in the company's debt levels compared to its equity.

Overall, the low debt-to-equity ratios indicate that Guidewire Software Inc has been maintaining a conservative capital structure, with a lower reliance on debt financing compared to equity. This could imply a lower financial risk and a more stable financial position for the company, as lower debt levels typically result in lower interest payments and reduced financial leverage. However, the occasional spikes in the ratio may warrant further investigation to understand the reasons behind these fluctuations and their potential impact on the company's financial stability and performance.