Workday Inc (WDAY)

Days of sales outstanding (DSO)

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Receivables turnover		4.33	4.36	3.89	4.14	4.12
DSO	days	84.33	83.66	93.75	88.16	88.65

January 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.33
= 84.33

Workday Inc's Days of Sales Outstanding (DSO) has remained relatively stable over the past five years based on the provided data. In January 31, 2021, the DSO was at 88.65 days, showing a slight decrease to 88.16 days by January 31, 2022. However, there was an increase in DSO to 93.75 days by January 31, 2023. Subsequently, there was a significant decrease to 83.66 days by January 31, 2024, followed by a modest increase to 84.33 days by January 31, 2025.

Overall, Workday Inc's DSO has shown fluctuations within a certain range over the years, reflecting the company's efficiency in collecting accounts receivable. The lower DSO values indicate that the company has been able to collect payments from customers more quickly, which is a positive indicator of effective credit management and liquidity. However, the increase in DSO in January 31, 2023, may signal a potential slowdown in collections that could impact cash flows and working capital management. Workday Inc may need to monitor its DSO closely to ensure efficient receivables management in the future.