Workday Inc (WDAY)

Payables turnover

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cost of revenue	US$ in thousands	3,662,000	3,123,000	2,816,540	2,291,660	1,940,900
Payables	US$ in thousands	108,000	78,000	154,000	55,487	75,596
Payables turnover		33.91	40.04	18.29	41.30	25.67

January 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,662,000K ÷ $108,000K
= 33.91

Based on the data provided, Workday Inc's payables turnover has shown varying trends over the past five years. The payables turnover ratio is a measure of how efficiently a company manages its accounts payable.

In January 2021, the payables turnover ratio stood at 25.67, indicating that Workday Inc was able to convert its accounts payable into cash 25.67 times during the year.

The ratio increased significantly to 41.30 in January 2022, suggesting that the company improved its ability to pay off its creditors more frequently.

However, in January 2023, the payables turnover ratio dropped to 18.29, implying that Workday Inc took longer to pay off its accounts payable compared to the previous year.

The ratio rebounded in January 2024 to 40.04, indicating an improvement in the company's efficiency in managing its accounts payable.

By January 2025, the payables turnover ratio decreased slightly to 33.91, still reflecting a relatively efficient management of accounts payable, albeit slightly lower than the previous year.

Overall, the fluctuation in Workday Inc's payables turnover ratio over the years suggests variations in the company's ability to pay its creditors promptly. A higher turnover ratio generally indicates better liquidity and efficient management of trade payables.