Guidewire Net Income vs Cost of Revenue Analysis

GWRE Stock  USD 109.29  1.96  1.76%   
Guidewire Software financial indicator trend analysis is much more than just examining Guidewire Software latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Guidewire Software is a good investment. Please check the relationship between Guidewire Software Net Income and its Cost Of Revenue accounts. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Guidewire Software. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For information on how to trade Guidewire Stock refer to our How to Trade Guidewire Stock guide.

Net Income vs Cost Of Revenue

Net Income vs Cost of Revenue Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Guidewire Software Net Income account and Cost of Revenue. At this time, the significance of the direction appears to have pay attention.
The correlation between Guidewire Software's Net Income and Cost of Revenue is -0.81. Overlapping area represents the amount of variation of Net Income that can explain the historical movement of Cost of Revenue in the same time period over historical financial statements of Guidewire Software, assuming nothing else is changed. The correlation between historical values of Guidewire Software's Net Income and Cost of Revenue is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Income of Guidewire Software are associated (or correlated) with its Cost of Revenue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Cost of Revenue has no effect on the direction of Net Income i.e., Guidewire Software's Net Income and Cost of Revenue go up and down completely randomly.

Correlation Coefficient

-0.81
Relationship DirectionNegative 
Relationship StrengthSignificant

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in Guidewire Software financial statement analysis. It represents the amount of money remaining after all of Guidewire Software operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.

Cost Of Revenue

Cost of Revenue is found on Guidewire Software income statement and represents the costs associated with goods and services Guidewire Software provides. Indirect cost, such as salaries, is not included. In other words, cost of revenue is the total cost incurred to obtain a sale. It is more than the traditional cost of goods sold, since it includes specific selling and marketing activities.
Most indicators from Guidewire Software's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Guidewire Software current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Guidewire Software. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For information on how to trade Guidewire Stock refer to our How to Trade Guidewire Stock guide.At present, Guidewire Software's Sales General And Administrative To Revenue is projected to increase slightly based on the last few years of reporting.
 2021 2022 2023 2024 (projected)
Interest Expense19.4M6.7M7.7M7.6M
Depreciation And Amortization22.7M24.8M28.6M20.3M

Guidewire Software fundamental ratios Correlations

0.690.750.980.80.690.56-0.220.830.860.910.80.960.790.770.880.870.490.580.860.840.770.990.280.770.51
0.690.520.650.880.440.42-0.170.540.70.670.590.640.530.390.510.680.50.380.570.630.750.66-0.260.390.14
0.750.520.670.790.990.6-0.740.950.740.920.960.630.990.550.720.920.320.890.970.970.770.710.680.570.24
0.980.650.670.730.590.47-0.070.770.820.870.720.990.720.820.890.790.450.510.810.760.70.990.230.820.55
0.80.880.790.730.740.69-0.440.750.720.870.880.690.820.480.650.90.640.580.820.870.940.740.130.490.28
0.690.440.990.590.740.58-0.790.910.70.880.940.550.970.50.660.890.290.880.940.940.730.630.730.510.21
0.560.420.60.470.690.58-0.370.580.230.680.730.450.670.130.410.770.620.270.60.720.80.50.330.140.54
-0.22-0.17-0.74-0.07-0.44-0.79-0.37-0.56-0.36-0.46-0.65-0.02-0.69-0.11-0.27-0.52-0.02-0.77-0.58-0.61-0.41-0.13-0.66-0.120.27
0.830.540.950.770.750.910.58-0.560.810.940.910.750.950.60.730.930.270.840.950.950.690.80.60.610.39
0.860.70.740.820.720.70.23-0.360.810.80.70.80.730.720.740.760.280.710.790.770.580.840.220.720.15
0.910.670.920.870.870.880.68-0.460.940.80.950.840.950.650.820.980.470.740.970.970.860.880.470.660.48
0.80.590.960.720.880.940.73-0.650.910.70.950.680.980.530.730.960.490.770.950.970.870.750.570.540.39
0.960.640.630.990.690.550.45-0.020.750.80.840.680.680.790.860.770.450.470.790.740.680.990.210.790.55
0.790.530.990.720.820.970.67-0.690.950.730.950.980.680.580.760.940.360.860.980.980.80.750.660.590.32
0.770.390.550.820.480.50.13-0.110.60.720.650.530.790.580.870.520.250.560.690.540.470.80.351.00.16
0.880.510.720.890.650.660.41-0.270.730.740.820.730.860.760.870.720.230.670.840.730.640.890.420.870.36
0.870.680.920.790.90.890.77-0.520.930.760.980.960.770.940.520.720.520.70.940.990.880.820.450.530.44
0.490.50.320.450.640.290.62-0.020.270.280.470.490.450.360.250.230.52-0.080.370.460.780.46-0.060.250.33
0.580.380.890.510.580.880.27-0.770.840.710.740.770.470.860.560.670.7-0.080.850.780.470.550.670.57-0.03
0.860.570.970.810.820.940.6-0.580.950.790.970.950.790.980.690.840.940.370.850.970.80.840.610.70.34
0.840.630.970.760.870.940.72-0.610.950.770.970.970.740.980.540.730.990.460.780.970.850.790.540.550.38
0.770.750.770.70.940.730.8-0.410.690.580.860.870.680.80.470.640.880.780.470.80.850.720.240.480.34
0.990.660.710.990.740.630.5-0.130.80.840.880.750.990.750.80.890.820.460.550.840.790.720.270.80.51
0.28-0.260.680.230.130.730.33-0.660.60.220.470.570.210.660.350.420.45-0.060.670.610.540.240.270.360.15
0.770.390.570.820.490.510.14-0.120.610.720.660.540.790.591.00.870.530.250.570.70.550.480.80.360.17
0.510.140.240.550.280.210.540.270.390.150.480.390.550.320.160.360.440.33-0.030.340.380.340.510.150.17
Click cells to compare fundamentals

Guidewire Software Account Relationship Matchups

Guidewire Software fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets2.4B2.3B2.3B2.0B2.3B1.3B
Other Current Liab73.3M122.2M114.1M27.7M31.9M31.3M
Total Current Liabilities225.2M300.3M337.5M373.3M429.3M450.7M
Total Stockholder Equity1.7B1.5B1.5B1.2B1.4B896.8M
Property Plant And Equipment Net169.0M177.5M171.0M106.9M122.9M129.0M
Current Deferred Revenue118.3M138.7M170.8M206.9M238.0M249.9M
Net Debt82.6M74.3M(130.7M)38.3M44.1M46.3M
Retained Earnings163.0M(66.1M)(284.0M)(618.0M)(556.2M)(528.3M)
Accounts Payable22.6M27.8M40.4M34.6M39.8M41.8M
Cash367.0M384.9M606.3M401.8M462.1M272.0M
Non Current Assets Total1.0B966.6M1.0B928.3M1.1B1.1B
Non Currrent Assets Other69.7M62.8M70.6M79.1M90.9M95.5M
Cash And Short Term Investments1.1B1.1B976.2M798.7M918.5M654.4M
Net Receivables163.7M183.1M215.3M238.8M274.6M288.3M
Common Stock Shares Outstanding82.9M83.6M83.6M82.2M94.5M75.2M
Liabilities And Stockholders Equity2.4B2.3B2.3B2.0B2.3B1.3B
Non Current Liabilities Total482.9M476.6M477.7M455.2M523.4M549.6M
Inventory34.7M24.4M1.011.1M12.8M7.7M
Other Current Assets11.3M28.4M61.2M51.0M58.7M61.6M
Other Stockholder Equity1.5B1.6B1.8B1.8B2.1B2.2B
Total Liab708.1M777.0M815.2M828.4M952.7M1.0B
Property Plant And Equipment Gross169.0M177.5M80.7M106.9M122.9M129.0M
Total Current Assets1.3B1.4B1.3B1.1B1.3B795.6M
Accumulated Other Comprehensive Income(5.2M)(6.2M)(19.8M)(13.9M)(12.5M)(11.8M)
Short Term Debt10.9M11.6M12.2M104.0M119.6M125.6M
Other Liab33.3M17.4M14.4M15.0M17.3M20.8M
Other Assets170.1M201.3M262.1M278.2M319.9M335.9M
Short Term Investments766.5M734.5M369.9M396.9M456.4M410.3M
Property Plant Equipment169.0M177.5M171.0M106.9M122.9M62.3M
Intangible Assets39.7M19.7M21.4M14.5M16.6M30.5M
Net Tangible Assets1.3B1.2B1.1B812.8M934.7M939.1M
Long Term Debt330.2M343.8M358.2M397.2M456.7M479.6M
Capital Surpluse1.3B1.4B1.5B1.8B2.0B1.1B
Deferred Long Term Liab31.0M31.6M7.5M35.0M40.3M42.3M
Non Current Liabilities Other18.6M10.2M6.9M9.0M10.4M8.8M

Guidewire Software Investors Sentiment

The influence of Guidewire Software's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Guidewire. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Guidewire Software's public news can be used to forecast risks associated with an investment in Guidewire. The trend in average sentiment can be used to explain how an investor holding Guidewire can time the market purely based on public headlines and social activities around Guidewire Software. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Guidewire Software's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Guidewire Software's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Guidewire Software's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Guidewire Software.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Guidewire Software in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Guidewire Software's short interest history, or implied volatility extrapolated from Guidewire Software options trading.

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When determining whether Guidewire Software is a strong investment it is important to analyze Guidewire Software's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Guidewire Software's future performance. For an informed investment choice regarding Guidewire Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Guidewire Software. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For information on how to trade Guidewire Stock refer to our How to Trade Guidewire Stock guide.
You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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When running Guidewire Software's price analysis, check to measure Guidewire Software's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Guidewire Software is operating at the current time. Most of Guidewire Software's value examination focuses on studying past and present price action to predict the probability of Guidewire Software's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Guidewire Software's price. Additionally, you may evaluate how the addition of Guidewire Software to your portfolios can decrease your overall portfolio volatility.
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Is Guidewire Software's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Guidewire Software. If investors know Guidewire will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Guidewire Software listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.66
Earnings Share
(0.62)
Revenue Per Share
11.319
Quarterly Revenue Growth
0.036
Return On Assets
(0.03)
The market value of Guidewire Software is measured differently than its book value, which is the value of Guidewire that is recorded on the company's balance sheet. Investors also form their own opinion of Guidewire Software's value that differs from its market value or its book value, called intrinsic value, which is Guidewire Software's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Guidewire Software's market value can be influenced by many factors that don't directly affect Guidewire Software's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Guidewire Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Guidewire Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guidewire Software's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.