Workday Inc (WDAY)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 14.74 | — | — |
| Receivables turnover | 4.33 | 4.36 | 3.89 | 4.14 | 4.12 |
| Payables turnover | 33.91 | 40.04 | 18.29 | 41.30 | 25.67 |
| Working capital turnover | 1.69 | 1.46 | 1.76 | 35.19 | 8.18 |
Workday Inc's activity ratios provide insight into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover: Workday Inc has no data available for inventory turnover for January 31, 2021, 2022, and 2024. However, for January 31, 2023, the inventory turnover ratio was 14.74, indicating that the company's inventory was sold approximately 14.74 times during the year, which suggests efficient inventory management.
2. Receivables Turnover: The company's receivables turnover has been relatively stable over the years, with values of 4.12, 4.14, 3.89, 4.36, and 4.33 for the years 2021 to 2025 respectively. This indicates that Workday Inc is efficient in collecting payments from its customers, with higher numbers suggesting faster turnover.
3. Payables Turnover: Workday Inc's payables turnover has shown fluctuations over the years, with values jumping from 25.67 in 2021 to 41.30 in 2022, dropping to 18.29 in 2023, rising to 40.04 in 2024, and then to 33.91 in 2025. A higher payables turnover ratio indicates that the company is taking longer to pay its bills, which could indicate stronger bargaining power or cash flow management.
4. Working Capital Turnover: The working capital turnover ratio for Workday Inc has shown a significant decrease over the years, dropping from 8.18 in 2021 to 1.69 in 2025. A decreasing trend in this ratio may suggest inefficiencies in the company's working capital management or possible changes in the operating cycle.
Overall, while the company demonstrates efficiency in managing its inventory and receivables, there are fluctuations in payables turnover and a decreasing trend in working capital turnover, which may warrant further analysis to understand the underlying reasons.
Average number of days
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 24.76 | — | — |
| Days of sales outstanding (DSO) | days | 84.33 | 83.66 | 93.75 | 88.16 | 88.65 |
| Number of days of payables | days | 10.76 | 9.12 | 19.96 | 8.84 | 14.22 |
Workday Inc's activity ratios provide insight into how efficiently the company manages its working capital and operating cycle.
1. Days of Inventory on Hand (DOH):
- From January 31, 2023, Workday Inc held inventory for an average of 24.76 days before selling it. This indicates that the company may have improved its inventory management efficiency compared to other years.
- For the other years, the data is not provided, which makes it difficult to assess the trend in inventory management over time.
2. Days of Sales Outstanding (DSO):
- Workday Inc took an average of 88.65 days to collect payments from customers in January 31, 2021, and this decreased to 84.33 days by January 31, 2025. This shows an improvement in the collection efficiency over the years.
- There was a slight increase in DSO in January 31, 2023, compared to the previous year. This increase may be due to changes in credit policies or customer payment behavior.
3. Number of Days of Payables:
- Workday Inc took an average of 14.22 days to pay its suppliers in January 31, 2021, and this decreased to 10.76 days by January 31, 2025. A decrease in this ratio indicates that the company is taking longer to pay its suppliers.
- In January 31, 2023, the number of days of payables increased significantly compared to the previous year, which could indicate changes in payment terms with suppliers.
Overall, an analysis of these activity ratios suggests that Workday Inc has been efficient in managing its working capital and operating cycle, with improvements seen in inventory turnover, receivables collection, and payables management over the years. However, further investigation into the reasons behind the fluctuations in certain years may provide additional insights into the company's financial operations.
See also:
Long-term
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 6.81 | 5.79 | 5.09 | 4.58 | 4.37 |
| Total asset turnover | 0.47 | 0.43 | 0.45 | 0.49 | 0.49 |
The Fixed Asset Turnover ratio for Workday Inc has shown a consistent increasing trend from 4.37 in January 31, 2021, to 6.81 in January 31, 2025. This indicates that the company is generating more revenue from its fixed assets over the years, which is a positive sign of operational efficiency and effective asset utilization.
On the other hand, the Total Asset Turnover ratio has fluctuated over the same period, with a slight decrease from 0.49 in January 31, 2021, to 0.43 in January 31, 2024, before increasing to 0.47 in January 31, 2025. This suggests that the company is generating slightly less revenue for every dollar of total assets in 2024 compared to 2021, though the ratio has shown improvement in 2025.
Overall, Workday Inc's increasing Fixed Asset Turnover ratio indicates improved efficiency in utilizing its fixed assets to generate revenue, while the fluctuating Total Asset Turnover ratio may indicate varying levels of revenue generation efficiency from all assets. Further analysis may be needed to understand the underlying reasons behind these trends.