Workday Inc (WDAY)

Quick 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	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
Receivables	US$ in thousands	1,950,000	1,452,000	1,336,000	1,133,000	1,639,000	1,224,820	1,270,940	1,089,290	1,570,090	1,040,470	1,105,290	778,076	1,242,540	865,040	872,764	647,163	1,032,480	742,744	694,289	584,219
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
Quick ratio		1.80	2.14	2.10	1.88	1.87	2.01	1.90	1.83	1.66	1.75	1.52	1.47	0.96	1.03	0.98	0.86	1.07	1.02	1.35	1.15

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 fluctuations over the period from April 30, 2020, to January 31, 2025. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

The quick ratio increased steadily from July 31, 2020, to July 31, 2023, indicating an improvement in the company's liquidity position during this period. The ratio exceeded 1 in most of these periods, which suggests that Workday Inc had an adequate level of liquid assets to cover its current liabilities without relying heavily on inventory.

However, the quick ratio dipped below 1 in the periods from April 30, 2021, to January 31, 2022, and then again from April 30, 2023, to January 31, 2024. This could indicate a temporary strain on liquidity or an increase in current liabilities relative to liquid assets during these periods.

From April 30, 2022, to January 31, 2025, the quick ratio consistently exceeded 1, reaching its highest point at 2.14 on October 31, 2024. This upward trend suggests that Workday Inc significantly improved its ability to cover short-term obligations with its quick assets during this period.

Overall, the increasing trend in the quick ratio from July 31, 2023, to October 31, 2024, demonstrates Workday Inc's strengthening liquidity position and indicates that the company may be better positioned to meet its short-term obligations without facing significant liquidity challenges.