Guidewire SoftwareLTS:0J1G +0.78%68 Current Ratio is 2.44 as of Apr. 2026, which is 46% below its 10-year median of 4.48. GuruFocus rates LTS:0J1G with a GF Score™ of 68/100 and a GF Value™ of $203.72 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,865 Software companies, Guidewire Software ranks better than 64.89% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Guidewire Software's current ratio for the quarter that ended in Apr. 2026 was 2.44.
Guidewire Software has a current ratio of 2.44. It generally indicates good short-term financial strength.
The historical rank and industry rank for Guidewire Software's Current Ratio or its related term are showing as below:
LTS:0J1G'
s Current Ratio Range Over the Past 10 Years
Min: 1.53 Med: 4.48 Max: 8.4
Current: 2.44
During the past 13 years, Guidewire Software's highest Current Ratio was 8.40. The lowest was 1.53. And the median was 4.48.
LTS:0J1G's Current Ratio is ranked better than 64.89% of 2865
companies
in the Software industry
Industry Median: 1.81
vs LTS:0J1G: 2.44
Guidewire Software (LTS:0J1G) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Guidewire Software Current Ratio Related Terms
Guidewire Software Current Ratio Historical Data
* Premium members only.
The historical data trend for Guidewire Software's Current 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.
LTS:0J1G vs FIG, FROG, HUBS: Current Ratio Comparison
For the Software - Application subindustry, Guidewire Software's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Software Industry
For the Software industry and Technology sector, Guidewire Software's Current Ratio distribution charts can be found below:
* The bar in red indicates where Guidewire Software's Current Ratio falls into.
* 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 (LTS:0J1G) has a Current Ratio of 2.44 as of Apr. 2026. This is 46% below median its historical median of 4.48. Over the past decade, Guidewire Software's Current Ratio has ranged from 1.53 to 8.40. According to the industry distribution chart, Guidewire Software ranks #1006 out of 2865 companies in the Software industry, placing it in the top 35.1%.
Is Guidewire Software's Current Ratio too high?
Guidewire Software's current Current Ratio of 2.44 is 46% below median its 10-year median of 4.48. Over the past 10 years, this metric has ranged from a low of 1.53 to a high of 8.40. The Software industry median Current Ratio is 1.81. Guidewire Software's value of 2.44 is 34.8% above this industry median. Based on the distribution chart, Guidewire Software ranks #1006 out of 2865 companies in the Software industry, which is above the industry midpoint. Overall, Guidewire Software has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guidewire Software's Current Ratio compare to FIG and FROG?
According to the Software industry distribution chart, Guidewire Software ranks #1006 out of 2865 companies for Current Ratio. This puts Guidewire Software in the upper half of its industry. The industry median Current Ratio is 1.81. Guidewire Software's value of 2.44 is 34.8% above this benchmark. Historically, Guidewire Software's own Current Ratio has ranged from 1.53 to 8.40 over the past decade. While the company's 10-year median is 4.48 vs. the industry median of 1.81, Guidewire Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Software company?
The median Current Ratio among Software companies is 1.81, based on 2,865 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Guidewire Software's current Current Ratio of 2.44 is 34.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median Current Ratio is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guidewire Software's current Current Ratio is 2.44, which is 46% below median its own 10-year median of 4.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guidewire Software stock overvalued right now?
Based on GuruFocus' analysis, Guidewire Software (LTS:0J1G) is currently considered Significantly Undervalued. The stock's GF Value™ is $203.72, compared to a current price of $135.95 — trading 33.3% below its estimated fair value. The current Current Ratio is 2.44, which is 46% below median its 10-year median of 4.48 and 34.8% above the Software industry median of 1.81. Guidewire Software's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Guidewire Software (LTS:0J1G), the current Current Ratio is 2.44 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Guidewire Software (LTS:0J1G) Overvalued in 2026?
Based on GuruFocus' analysis, Guidewire Software stock appears to be undervalued.
The current stock price of $135.95 is trading 33.3% below its estimated GF Value™ of $203.72.
GuruFocus considers Guidewire Software to be Significantly Undervalued.
Key valuation signals for LTS:0J1G:
Current Ratio: 2.44 (46% below median its 10-year median of 4.48)
GF Value™: $203.72 vs. price of $135.95 (33.3% below fair value)
Industry Position: 34.8% above the Software median (#1006 of 2865)
No single metric tells the full story. See the LTS:0J1G stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guidewire Software provides cloud-based software solutions for property and casualty insurers. The flagship product, InsuranceSuite is a 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 midmarket offering, as well as a variety of other add-on applications and services.
68GF Score
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