Workday Inc (WDAY)

Cash ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cash and cash equivalents	US$ in thousands	1,543,000	2,012,000	1,886,000	1,534,270	1,384,180
Short-term investments	US$ in thousands	6,474,000	5,801,000	4,235,080	2,109,890	2,151,470
Total current liabilities	US$ in thousands	5,548,000	5,055,000	4,628,000	5,067,860	4,282,650
Cash ratio		1.45	1.55	1.32	0.72	0.83

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,543,000K + $6,474,000K) ÷ $5,548,000K
= 1.45

The cash ratio of Workday Inc has exhibited various trends over the years. As of January 31, 2021, the cash ratio was 0.83, indicating that the company had $0.83 in cash and cash equivalents for every $1 of current liabilities. Subsequently, the cash ratio declined to 0.72 by January 31, 2022, suggesting a decrease in liquidity.

However, the cash ratio saw a significant improvement in the following years, reaching 1.32 by January 31, 2023, and further increasing to 1.55 by January 31, 2024. These higher ratios indicate that Workday Inc had improved its ability to meet short-term obligations with its available cash reserves.

By January 31, 2025, the cash ratio decreased slightly to 1.45, remaining at a relatively healthy level. Overall, the trend in Workday Inc's cash ratio shows fluctuations but generally reflects an improvement in the company's liquidity position over the years, with the latest ratio suggesting a strong ability to cover short-term obligations with cash on hand.