The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Guidewire Software's Cash Ratio for the quarter that ended in Jan. 2024 was 2.53.
Guidewire Software has a Cash Ratio of 2.53. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Guidewire Software's Cash Ratio or its related term are showing as below:
GWRE'
s Cash Ratio Range Over the Past 10 Years
Min: 2.14 Med: 4.95 Max: 7.27
Current: 2.53
During the past 13 years, Guidewire Software's highest Cash Ratio was 7.27. The lowest was 2.14. And the median was 4.95.
GWRE's Cash Ratio is ranked better than 81.03% of 2768
companies
in the Software industry
Industry Median: 0.78
vs GWRE: 2.53
Guidewire Software Cash Ratio Historical Data
The historical data trend for Guidewire Software's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Guidewire Software's Cash Ratio
For the Software - Application subindustry, Guidewire Software's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Guidewire Software's Cash Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Guidewire Software's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Guidewire Software's Cash Ratio falls into.
Guidewire Software Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Guidewire Software's Cash Ratio for the fiscal year that ended in Jul. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Guidewire Software (NYSE:GWRE) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Guidewire Software Cash Ratio Related Terms
Thank you for viewing the detailed overview of Guidewire Software's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Guidewire Software (Guidewire Software) Business Description
Guidewire Software provides software solutions for property and casualty insurers. Flagship product InsuranceSuite is an on-premises system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a cloud-based offering, as well as a variety of other add-on applications.
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