Workday Inc (WDAY)
Working capital 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 |
| Total current assets | US$ in thousands | 10,545,000 | 9,939,000 | 8,108,000 | 5,214,060 | 4,802,060 |
| Total current liabilities | US$ in thousands | 5,548,000 | 5,055,000 | 4,628,000 | 5,067,860 | 4,282,650 |
| Working capital turnover | 1.69 | 1.46 | 1.76 | 35.19 | 8.18 |
January 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,440,000K ÷ ($10,545,000K – $5,548,000K)
= 1.69
Workday Inc's working capital turnover has shown varying trends over the years as per the provided data. In January 31, 2021, the working capital turnover was 8.18, indicating that the company was efficient in utilizing its working capital to generate sales during that period. However, the ratio significantly increased to 35.19 by January 31, 2022, suggesting a remarkable improvement in efficiency in converting working capital into revenue.
Subsequently, there was a drastic drop in the working capital turnover ratio to 1.76 by January 31, 2023, indicating a potential decrease in the company's ability to efficiently utilize its working capital to support sales activities. This decrease could be a signal of potential inefficiencies in managing working capital during that period.
The ratio further declined to 1.46 by January 31, 2024, showing a continued decline in the efficiency of working capital turnover. This decrease might raise concerns regarding the company's working capital management effectiveness and its ability to generate revenue using available working capital.
By January 31, 2025, the working capital turnover slightly increased to 1.69, suggesting a marginal improvement from the previous year but still indicating a lower efficiency in utilizing working capital compared to the earlier years. This trend highlights the importance of monitoring and assessing working capital management practices to ensure optimal utilization of resources for revenue generation.
Peer comparison
Jan 31, 2025