Workday Inc (WDAY)
Fixed asset turnover
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,440,000 | 7,151,000 | 6,112,720 | 5,144,470 | 4,250,860 |
| Property, plant and equipment | US$ in thousands | 1,239,000 | 1,234,000 | 1,201,000 | 1,123,080 | 972,403 |
| Fixed asset turnover | 6.81 | 5.79 | 5.09 | 4.58 | 4.37 |
January 31, 2025 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,440,000K ÷ $1,239,000K
= 6.81
Fixed asset turnover is a financial ratio that measures how effectively a company utilizes its fixed assets to generate revenue. Looking at the data provided for Workday Inc from January 31, 2021, to January 31, 2025, we observe a consistent improvement in the fixed asset turnover ratio.
Starting at 4.37 in January 2021, the ratio increased to 4.58 in January 2022, 5.09 in January 2023, 5.79 in January 2024, and further to 6.81 in January 2025. This upward trend indicates that Workday Inc has become more efficient in generating revenue from its fixed assets over the years.
A rising fixed asset turnover ratio is generally seen as positive, as it suggests that the company is using its fixed assets more efficiently to drive sales. It reflects effective management of the resources in place, which is crucial for overall profitability and sustainable growth. Workday Inc's increasing fixed asset turnover ratio indicates improving operational efficiency and utilization of its fixed assets, which is a promising sign for the company's financial performance.
Peer comparison
Jan 31, 2025