Guidewire Software Inc (GWRE)

Financial leverage 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
Total assets US$ in thousands 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 2,364,850 2,208,870 2,221,590
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
Financial leverage ratio 2.05 1.66 1.59 1.60 1.59 1.69 1.60 1.64 1.64 1.56 1.82 1.47 1.45 1.50 1.45 1.42 1.41 1.43 1.39 1.39

October 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,596,700K ÷ $1,268,030K
= 2.05

The financial leverage ratio of Guidewire Software Inc has shown some fluctuations over the past few years. The ratio was relatively stable around 1.39 to 1.43 from January 2020 to October 2020, indicating a moderate level of leverage during that period. However, there was a noticeable increase in the ratio to 1.82 by April 2022, suggesting a higher level of financial leverage.

Subsequently, the ratio decreased to 1.56 by July 2022 and then fluctuated between 1.45 to 1.69 until October 2023. This range indicates some volatility in the company's leverage position during this time. However, by October 2024, there was a significant spike in the financial leverage ratio to 2.05, signifying a substantial increase in the company's leverage.

Overall, the financial leverage ratio of Guidewire Software Inc has shown fluctuations over the years, with some periods of increased leverage levels. It will be important for the company to closely monitor and manage its leverage to ensure a healthy balance between debt and equity in its capital structure.