Workday Inc (WDAY)
Cash conversion cycle
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 24.76 | — | — |
| Days of sales outstanding (DSO) | days | 84.33 | 83.66 | 93.75 | 88.16 | 88.65 |
| Number of days of payables | days | 10.76 | 9.12 | 19.96 | 8.84 | 14.22 |
| Cash conversion cycle | days | 73.57 | 74.54 | 98.55 | 79.32 | 74.44 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 84.33 – 10.76
= 73.57
The cash conversion cycle of Workday Inc has exhibited some fluctuations over the past five years. In January 2021, the company's cash conversion cycle was 74.44 days, which increased to 79.32 days by January 2022. Subsequently, there was a significant rise in the cash conversion cycle to 98.55 days by January 2023. However, in the following year, the cycle decreased to 74.54 days and further improved to 73.57 days by January 2025.
Overall, the cash conversion cycle of Workday Inc has shown variability, possibly indicating changes in the company's efficiency in managing its cash, inventory, and accounts receivable. The company should continue monitoring and optimizing its cash conversion cycle to enhance its working capital management and overall financial performance.
Peer comparison
Jan 31, 2025