Guidewire Software Inc (GWRE)
Financial leverage ratio
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,721,100 | 2,488,070 | 2,542,790 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,457,230 | 1,362,580 | 1,268,740 | 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 | 1,449,650 | 1,480,470 | 1,498,380 | 1,544,890 | 1,556,480 | 1,644,660 | 1,659,860 |
| Financial leverage ratio | 1.87 | 1.83 | 2.00 | 2.05 | 1.66 | 1.59 | 1.60 | 1.59 | 1.69 | 1.60 | 1.64 | 1.64 | 1.56 | 1.49 | 1.47 | 1.45 | 1.50 | 1.45 | 1.42 | 1.41 |
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. demonstrates a general increasing trend over the analyzed period, starting at 1.41 as of October 31, 2020, and rising to approximately 2.05 by October 31, 2024. This ratio, which measures the extent of the company's debt relative to its equity, indicates a gradual increase in leverage, suggesting that the company has been progressively utilizing more debt financing over time.
Between October 2020 and October 2021, the ratio exhibited modest fluctuations, remaining within a narrow range around 1.41 to 1.45. Starting in late 2021 and through 2022, the ratio experienced a steady upward movement, reaching approximately 1.64 by October 2022, signaling an incremental increase in financial leverage.
The trend persisted into 2023, with the ratio rising further to 1.69 by July 2023 before slightly declining to 1.59 in October 2023. Despite this slight decrease, the ratio remained elevated relative to the earlier period, reflecting sustained leverage.
From late 2023 into mid-2024, the ratio significantly increased, reaching 2.05 in October 2024, the highest point within the observed timeframe. This acceleration in leverage suggests a strategic shift towards greater debt utilization, potentially to fund growth initiatives or acquisitions.
Looking beyond this peak, the ratio slightly declined to 2.00 in January 2025 and then continued a downward trend to 1.83 by April 2025. Subsequently, it increased again to 1.87 in July 2025, indicating some fluctuations but maintaining a relatively elevated leverage level compared to the earlier years.
Overall, the data reflect a gradual but consistent increase in Guidewire Software Inc.'s financial leverage over the analyzed period, punctuated by short-term fluctuations. The upward trend indicates a continued reliance on debt financing, which could enhance return on equity but also introduces greater financial risk if not managed prudently.