Workday Inc (WDAY)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,543,000	1,311,000	1,635,000	1,752,000	2,012,000	1,564,000	1,436,000	1,444,000	1,886,000	1,575,960	2,486,540	2,776,340	1,534,270	1,297,260	1,087,070	959,358	1,384,180	1,067,040	1,239,700	1,214,210
Short-term investments	US$ in thousands	6,474,000	6,695,000	6,494,000	5,430,000	5,801,000	5,316,040	5,221,400	4,885,310	4,235,080	3,916,130	3,806,430	3,479,020	2,109,890	2,257,720	2,220,890	2,035,170	2,151,470	1,880,770	1,513,840	1,384,790
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
Cash ratio		1.45	1.81	1.80	1.62	1.55	1.71	1.59	1.57	1.32	1.48	1.30	1.31	0.72	0.83	0.77	0.71	0.83	0.81	1.08	0.94

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 is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

Analyzing the cash ratio of Workday Inc based on the provided data, we observe fluctuations in the ratio over time. The cash ratio for Workday Inc ranges from a low of 0.71 on April 30, 2021, to a high of 1.81 on October 31, 2024.

Generally, a cash ratio below 1 indicates that a company may have difficulty meeting its short-term obligations with its available cash and cash equivalents alone. Conversely, a ratio above 1 suggests that the company has more than enough cash to cover its short-term liabilities.

Workday Inc's cash ratio has shown volatility, with fluctuations between 0.71 and 1.81 over the reported periods. This indicates that the company's ability to meet its short-term obligations solely with its cash holdings has varied.

It is essential for investors and stakeholders to monitor the cash ratio alongside other liquidity and financial metrics to assess Workday Inc's overall financial health and ability to weather short-term financial challenges.