Guidewire Software Inc (GWRE)
Financial leverage ratio
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,721,100 | 2,226,290 | 2,027,890 | 2,266,900 | 2,321,840 |
| Total stockholders’ equity | US$ in thousands | 1,457,230 | 1,342,730 | 1,199,470 | 1,451,660 | 1,544,890 |
| Financial leverage ratio | 1.87 | 1.66 | 1.69 | 1.56 | 1.50 |
July 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,721,100K ÷ $1,457,230K
= 1.87
The financial leverage ratio of Guidewire Software Inc exhibits a generally upward trend over the period from July 31, 2021, to July 31, 2025. Specifically, the ratio increased from 1.50 in 2021 to 1.56 in 2022, indicating a modest rise in the proportion of total assets financed by debt relative to equity. This upward movement continues more prominently between 2022 and 2023, with the ratio reaching 1.69, reflecting an increased reliance on borrowed funds to support the company’s asset base.
In the subsequent year, the ratio decreases slightly to 1.66 in 2024, suggesting a marginal reduction in leverage, possibly due to decreased debt levels or improved equity position. However, by July 31, 2025, the ratio rises again to 1.87, surpassing previous levels and indicating a renewed and higher leverage position relative to prior years.
Overall, the trend demonstrates that Guidewire Software Inc has been gradually increasing its financial leverage over this period, with occasional minor fluctuations. The escalation in the leverage ratio implies a greater dependence on debt to finance its assets, which could increase financial risk but may also enhance potential returns on equity if managed effectively.