Workday Inc (WDAY)

Quick ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cash	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
Receivables	US$ in thousands	1,950,000	1,639,000	1,570,090	1,242,540	1,032,480
Total current liabilities	US$ in thousands	5,548,000	5,055,000	4,628,000	5,067,860	4,282,650
Quick ratio		1.80	1.87	1.66	0.96	1.07

January 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,543,000K + $6,474,000K + $1,950,000K) ÷ $5,548,000K
= 1.80

The quick ratio of Workday Inc has shown fluctuation over the past five years. As of January 31, 2023, the quick ratio improved significantly to 1.66, indicating the company had $1.66 of easily liquid assets to cover each dollar of current liabilities. This suggests a strong ability to meet short-term obligations without relying heavily on inventory. Subsequently, in January 31, 2024, the quick ratio increased even further to 1.87, indicating continued improvement in the company's liquidity position.

However, in January 31, 2022, the quick ratio decreased to 0.96, suggesting a potential liquidity challenge as the company might have had fewer liquid assets to cover its current liabilities. Despite this temporary decline, Workday Inc improved its liquidity position in the following years. As of the most recent data on January 31, 2025, the quick ratio stood at 1.80, indicating the company's ability to meet short-term obligations has remained strong.

Overall, the trend in Workday Inc's quick ratio demonstrates fluctuations but generally indicates a reasonable liquidity position, with the company having a sufficient level of quick assets to cover its short-term liabilities.