Guidewire Software Inc (GWRE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.26 | 0.00 | 0.00 | 0.00 | 0.00 | 0.20 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.20 | 0.00 | 0.00 | 0.20 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.35 | 0.00 | 0.00 | 0.00 | 0.00 | 0.25 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.23 | 0.00 | 0.00 | 0.22 | 0.00 | 0.00 |
| 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 |
| 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 |
Guidewire Software Inc's solvency ratios show a stable financial position with minimal debt levels relative to its assets, capital, and equity. The Debt-to-assets ratio remained consistently low throughout the period, indicating that the company's assets were largely financed by equity rather than debt.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also reflected low levels of leverage, with occasional slight increases in certain quarters but generally remaining at low levels. This suggests that Guidewire Software Inc has maintained a conservative capital structure, relying more on equity for funding its operations.
The Financial leverage ratio, which measures the proportion of debt in the company's capital structure, showed a gradual increase over the period. However, the ratio remained below 2, indicating that the company's level of financial leverage was moderate and manageable.
Overall, based on the solvency ratios analyzed, Guidewire Software Inc appears to have a solid financial footing with a prudent approach to managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -3.30 | -7.80 | -8.42 | -14.53 | -16.17 | -22.26 | -18.84 | -14.61 | -12.78 | -10.26 | -8.69 | -7.96 | -7.38 | -5.64 | -3.30 | -2.18 | -1.70 | -1.33 | -2.64 | -2.11 |
The interest coverage ratio for Guidewire Software Inc has shown a consistent negative trend from January 2020 to October 2024. The ratio started at -2.11 in January 2020 and reached its lowest point of -22.26 in July 2023. This indicates that the company's operating income was not sufficient to cover its interest expenses during this period.
However, there was a notable improvement in the interest coverage ratio from October 2023 onwards, with the ratio gradually increasing to -3.30 in April 2024 and further improving to -3.30 in October 2024. This positive trend suggests that the company may have been able to enhance its operating performance and generate higher income relative to its interest expenses.
Overall, while the company faced challenges in covering its interest expenses in the earlier years, the improving trend in the interest coverage ratio in the latter period indicates a potential strengthening of its financial position and ability to meet its debt obligations.