Workday Inc (WDAY)
Working capital 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 |
| Total current assets | US$ in thousands | 10,545,000 | 9,078,000 | 9,200,000 | 8,874,000 | 9,939,000 | 8,574,160 | 8,381,690 | 7,873,090 | 8,108,000 | 6,970,280 | 7,804,660 | 7,443,230 | 5,214,060 | 4,693,710 | 4,461,110 | 3,905,800 | 4,802,060 | 3,958,240 | 3,714,180 | 3,450,370 |
| Total current liabilities | US$ in thousands | 5,548,000 | 4,422,000 | 4,513,000 | 4,428,000 | 5,055,000 | 4,029,390 | 4,181,960 | 4,044,090 | 4,628,000 | 3,723,400 | 4,857,860 | 4,781,390 | 5,067,860 | 4,275,050 | 4,274,100 | 4,210,760 | 4,282,650 | 3,625,200 | 2,553,120 | 2,770,960 |
| 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 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,411,000K ÷ ($10,545,000K – $5,548,000K)
= 1.68
Workday Inc's working capital turnover ratio has exhibited significant fluctuations over the years, reflecting changes in the efficiency of its working capital management. The ratio peaked at 35.25 on January 31, 2022, indicating that Workday was able to generate 35.25 times its working capital in revenue during that period. This suggests a highly efficient utilization of working capital to drive sales.
However, there was a sharp decline in the ratio over the subsequent quarters, reaching a low of 1.46 on January 31, 2024. This drop may indicate potential challenges in managing working capital efficiently, which could impact the company's liquidity and operational performance.
In the most recent period, the working capital turnover ratio stood at 1.68 on January 31, 2025, showing a slight improvement from the previous period. This indicates that Workday was able to generate 1.68 times its working capital in revenue, suggesting some recovery in working capital efficiency compared to the previous quarter.
Overall, the fluctuating trend in Workday's working capital turnover ratio highlights the importance of effective working capital management in maximizing operational efficiency and generating revenue. Monitoring and improving this ratio can help Workday enhance its liquidity and financial performance in the long run.
Peer comparison
Jan 31, 2025