Workday Inc (WDAY)

Days of sales outstanding (DSO)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Receivables turnover		4.31	5.58	5.82	6.58	4.36	5.61	5.20	5.83	3.90	5.66	5.11	6.95	4.15	5.66	5.33	6.85	4.13	5.53	5.68	6.46
DSO	days	84.62	65.42	62.70	55.47	83.66	65.07	70.20	62.58	93.66	64.46	71.37	52.54	88.01	64.51	68.52	53.29	88.33	65.95	64.26	56.50

January 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.31
= 84.62

The days of sales outstanding (DSO) for Workday Inc has shown fluctuations over the reported periods. The DSO represents the average number of days that it takes for a company to collect revenue after making a sale.

From April 30, 2020, to January 31, 2025, Workday Inc experienced varying DSO figures ranging from a low of 52.54 days to a high of 93.66 days. The DSO increased noticeably from 56.50 days on April 30, 2020, to 88.33 days on January 31, 2021, indicating a possibly slower collection of receivables during that period.

Following a decrease to 53.29 days by April 30, 2021, the DSO increased again to 93.66 days by January 31, 2023, suggesting a potential challenge in managing accounts receivable during that time frame. Subsequently, a decline in DSO was observed on April 30, 2023, and July 31, 2024, at 62.58 days and 62.70 days, respectively, indicating an improvement in the collection efficiency of the company.

Overall, fluctuations in DSO can reflect changes in the company's credit policies, customer payment behavior, and efficiency of its account receivable management. Workday Inc may need to closely monitor and manage its DSO to ensure efficient cash flow and effective working capital management.