Guidewire Software Inc (GWRE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The analysis of Guidewire Software Inc.'s solvency ratios over the specified period reveals a consistent pattern of negligible or absent leverage through debt. Specifically, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio uniformly report values of zero across all examined dates from October 2020 through July 2025. This suggests that the company has neither held debt nor utilized leverage to any significant extent during this timeframe.
Further insight is provided by the financial leverage ratio, which fluctuates within a relatively narrow band, starting at 1.41 in October 2020 and exhibiting gradual increases and decreases over time. The ratio peaks at 2.05 in October 2024 before settling around 1.83 to 1.87 in mid-2025. This ratio, being above 1, indicates that the company's capital structure is predominantly financed by shareholders' equity, with minimal or no debt financing. The fluctuations could reflect variations in total assets and equity levels, but the absence of reported debt suggests that leverage originates primarily from retained earnings or internal funding sources rather than external borrowings.
Overall, the solvency profile of Guidewire Software Inc. is characterized by an absence of debt obligations, implying a low financial risk profile in terms of leverage. The company appears to operate with a conservative capital structure, relying mainly on equity financing, which reduces exposure to debt-related financial distress and interest obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.74 | 3.35 | -2.69 | 3.04 | -2.98 | -3.44 | -9.70 | -11.98 | -18.97 | -17.70 | -14.44 | -14.12 | -10.81 | -9.33 | -7.94 | -6.50 | -4.57 | -1.65 | -1.22 | -0.85 |
The analysis of Guidewire Software Inc's interest coverage ratios over the examined period reveals a significant and persistent pattern of negative values from October 2020 through October 2024, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses on the majority of these dates. Specifically, the ratio deteriorated sharply from -0.85 in October 2020 to a low of -18.97 as of July 2023, reflecting increasing difficulty in meeting interest obligations and a deteriorating capacity to generate adequate operating profits to cover financing costs. This prolonged negative trend suggests substantial financial strain and potential issues with debt servicing during this period, aligning with a period of sustained operational or financial challenges.
However, there is a notable improvement starting in October 2024, when the interest coverage ratio turns positive at 3.04, indicating that the company's EBIT surpasses its interest expenses for the first time in nearly four years. This positive turn continues into early 2025, with ratios reaching as high as 4.74 in July 2025, signaling a significant strengthening of the firm's ability to meet its interest obligations and suggesting a period of improved financial health and operational performance.
Overall, the data depicts a period of financial distress characterized by negative coverage ratios, followed by a progressive recovery that enhances liquidity and solvency prospects for Guidewire Software Inc. The shift from negative to positive ratios marks a pivotal change, indicating potential recovery strategies, operational improvements, or deleveraging efforts that have begun to pay off, thereby reducing financial risk and improving the firm's ability to service its debt going forward.