Workday Inc (WDAY)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	8,411,000	8,100,880	7,777,210	7,455,860	7,150,680	6,870,140	6,607,800	6,352,880	6,118,760	5,891,520	5,652,390	5,405,600	5,153,000	4,894,580	4,649,310	4,433,030	4,266,370	4,110,989	3,943,396	3,774,015
Receivables	US$ in thousands	1,950,000	1,452,000	1,336,000	1,133,000	1,639,000	1,224,820	1,270,940	1,089,290	1,570,090	1,040,470	1,105,290	778,076	1,242,540	865,040	872,764	647,163	1,032,480	742,744	694,289	584,219
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

January 31, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $8,411,000K ÷ $1,950,000K
= 4.31

The receivables turnover ratio is a measure of how efficiently a company is collecting outstanding receivables from its customers during a specific period. In the case of Workday Inc, the receivables turnover ratio has fluctuated over the past few years.

From January 31, 2023, to April 30, 2024, the receivables turnover ratio ranged from a low of 3.90 to a high of 6.95. This indicates that Workday Inc was able to collect its outstanding receivables anywhere from 3.90 to 6.95 times during that time frame. A higher receivables turnover ratio generally indicates a more efficient collection process, as the company is collecting its outstanding receivables more frequently.

However, there was some variability in the receivables turnover ratio during this period, with fluctuations occurring from quarter to quarter. For example, the ratio increased from January 31, 2023, to April 30, 2023, before decreasing in the subsequent quarter. This suggests that there may have been changes in the company's credit policies, customer payment behavior, or sales volume that impacted the collection of receivables.

Overall, it is important for Workday Inc to closely monitor its receivables turnover ratio to ensure that it is maintaining an efficient collection process and managing its accounts receivable effectively. Additionally, the company should investigate any significant fluctuations in the ratio to identify potential areas for improvement in its receivables management practices.