Workday Inc (WDAY)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	—	—	—	—	14.74	15.06	15.21	14.74	—	15.50	—	—	—	—	—	—	—	—	—
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
Payables turnover	33.56	47.13	38.52	42.40	40.04	38.56	33.70	25.78	18.29	35.60	42.14	19.65	41.30	45.51	39.28	41.10	25.67	34.64	32.42	52.42
Working capital turnover	1.68	1.74	1.66	1.68	1.46	1.51	1.57	1.66	1.76	1.81	1.92	2.03	35.25	11.69	24.86	—	8.21	12.34	3.40	5.55

The analysis of Workday Inc activity ratios based on the provided data shows the following trends:

1. Inventory Turnover:
- Workday Inc had an inventory turnover ratio of 15.50 for the period ending July 31, 2022, which increased to 15.21 by April 30, 2023. This indicates that the company is efficiently managing its inventory levels.
- The inventory turnover remained relatively stable around the range of 14 to 15 times over the subsequent periods up to October 31, 2023.

2. Receivables Turnover:
- Workday Inc's receivables turnover ratio fluctuated over the analyzed periods, ranging from a low of 3.90 on January 31, 2023, to a high of 6.95 on April 30, 2022.
- The company showed improvements in managing its receivables by increasing the turnover ratio to 5.83 on April 30, 2023, after the dip in the previous period.

3. Payables Turnover:
- Workday Inc's payables turnover ratio varied significantly from a high of 52.42 on April 30, 2020, to a low of 18.29 on January 31, 2023.
- The company improved its payables turnover to 33.56 on January 31, 2025, indicating a more efficient management of payables during that period.

4. Working Capital Turnover:
- The working capital turnover ratio for Workday Inc ranged from 1.46 to 35.25 over the analyzed periods.
- The company showed a significant improvement in utilizing its working capital efficiently, with a peak ratio of 35.25 on January 31, 2022, before declining gradually in the subsequent periods.

Overall, the activity ratios analysis suggests that Workday Inc has maintained efficient management of inventory and working capital, although there have been fluctuations in receivables and payables turnover ratios over the analyzed periods. Further monitoring of these ratios will be essential to assess the company's ongoing operational efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	24.76	24.23	23.99	24.76	—	23.54	—	—	—	—	—	—	—	—	—
Days of sales outstanding (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
Number of days of payables	days	10.88	7.74	9.48	8.61	9.12	9.46	10.83	14.16	19.96	10.25	8.66	18.58	8.84	8.02	9.29	8.88	14.22	10.54	11.26	6.96

Based on the provided data, let's analyze the activity ratios of Workday Inc:

1. Days of Inventory on Hand (DOH):
- Workday Inc's Days of Inventory on Hand has shown improvement over the years. The company had 23.54 days of inventory on hand as of July 31, 2022, and this increased slightly to 24.23 days by July 31, 2023. This indicates that Workday is holding inventory for approximately 24 days before selling it. However, the data for the most recent periods is not available.
- A lower number of days of inventory on hand is generally preferred as it signifies efficient inventory management and faster inventory turnover.

2. Days of Sales Outstanding (DSO):
- Workday Inc's Days of Sales Outstanding fluctuated over the years. The number of days it takes for the company to collect its accounts receivable ranged from 52.54 days as of April 30, 2022, to 93.66 days as of January 31, 2023.
- A higher DSO indicates that Workday takes longer to collect payments from customers, which might impact its cash flow negatively. The company should strive to reduce this number by improving its credit control and collection processes.

3. Number of Days of Payables:
- Workday Inc's Number of Days of Payables has varied but generally remained within a reasonable range. The company took around 18.58 days to pay its payables as of April 30, 2022, and this decreased to 10.88 days by January 31, 2025.
- A longer payment period indicates that the company is taking longer to pay its suppliers, which can sometimes be beneficial in terms of cash flow management. However, it's essential to strike a balance to maintain healthy supplier relationships.

Overall, Workday Inc should focus on optimizing its inventory management, reducing days of sales outstanding, and managing its payables effectively to enhance its operational efficiency and financial performance.

Long-term

	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
Fixed asset turnover	6.79	6.41	6.18	6.02	5.79	5.69	5.41	5.22	5.09	4.83	4.58	4.56	4.59	4.37	4.09	3.84	4.39	4.21	4.12	4.03
Total asset turnover	0.47	0.49	0.48	0.47	0.43	0.49	0.48	0.48	0.45	0.48	0.43	0.42	0.49	0.52	0.51	0.51	0.49	0.52	0.53	0.52

Workday Inc's fixed asset turnover has shown consistent improvement over the years, increasing from 4.03 in April 2020 to 6.79 in January 2025. This indicates that the company is generating more sales revenue relative to its investment in fixed assets.

In contrast, the total asset turnover ratio fluctuated over the period, with a slight decline at the beginning and end of the period but showing some improvement in between. It ranged from 0.42 in April 2022 to 0.53 in July 2020, before settling at 0.47 in January 2025. This suggests that the company's total assets are not being used as efficiently to generate sales compared to fixed assets.

Overall, the trends in the fixed asset turnover and total asset turnover ratios for Workday Inc indicate that the company is effectively utilizing its fixed assets to generate sales, but there may be room for improvement in using its total assets more efficiently to drive revenue.