Workday Inc (WDAY)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.61% | 56.33% | 53.92% | 55.45% | 54.34% |
| Operating profit margin | 4.92% | 2.56% | -3.63% | -2.26% | -5.85% |
| Pretax margin | 7.56% | 4.98% | -4.25% | 0.31% | -6.47% |
| Net profit margin | 6.23% | 19.31% | -6.00% | 0.57% | -6.64% |
Workday Inc has shown a consistent improvement in its gross profit margin over the years, increasing from 54.34% in January 31, 2021 to 56.61% in January 31, 2025. This indicates that the company has been able to control its cost of goods sold effectively and generate more profit from its revenue.
The operating profit margin has also shown a positive trend, moving from negative figures in 2021 and 2022 to 4.92% in January 31, 2025. This indicates that Workday has been able to better manage its operating expenses and improve its operational efficiency over the years.
Similarly, the pretax margin has shown a notable improvement, shifting from negative figures in 2021 and 2023 to 7.56% in January 31, 2025. This suggests that the company has been able to enhance its profitability before accounting for taxes through better financial management and cost control measures.
The net profit margin, a key metric for assessing overall profitability, has exhibited a significant improvement from -6.64% in January 31, 2021 to 6.23% in January 31, 2025. This indicates that Workday has been successful in boosting its bottom line profitability, reflecting better control over expenses and an increase in net income relative to its revenue.
Overall, Workday Inc's profitability ratios demonstrate a positive trajectory, showcasing the company's ability to efficiently manage its costs, improve operational efficiency, and enhance overall profitability over the years.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.31% | 1.11% | -1.65% | -1.11% | -2.85% |
| Return on assets (ROA) | 2.93% | 8.39% | -2.72% | 0.28% | -3.24% |
| Return on total capital | 3.45% | 4.25% | -1.84% | 0.64% | -5.20% |
| Return on equity (ROE) | 5.82% | 17.09% | -6.57% | 0.65% | -8.62% |
Based on the provided data on Workday Inc's profitability ratios, we can observe the following trends:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has been fluctuating over the years, starting at -2.85% in January 2021, gradually improving to 2.31% by January 31, 2025.
- The company's operational efficiency in generating profits from its total assets has shown improvement over the years.
2. Return on Assets (ROA):
- The ROA started at -3.24% in January 2021, turned positive to 8.39% in January 2024, and then decreased to 2.93% by January 31, 2025.
- The trend indicates that the company has been able to effectively utilize its assets to generate profits, with some fluctuations in performance.
3. Return on Total Capital:
- The Return on Total Capital has also shown variability, ranging from -5.20% in January 2021 to 4.25% in January 31, 2024.
- This metric reflects the company's ability to generate returns for both equity and debt holders, indicating a moderate improvement in overall profitability.
4. Return on Equity (ROE):
- The Return on Equity started at -8.62% in January 2021, increased significantly to 17.09% by January 2024, and then moderated to 5.82% by January 31, 2025.
- Overall, the ROE metric highlights how effectively the company is generating returns for its shareholders, showing a notable improvement in profitability over the years.
In conclusion, Workday Inc's profitability ratios have demonstrated mixed performance over the period under review, with improvements in some metrics and fluctuations in others. It indicates that the company has made progress in efficiently utilizing its assets and capital to generate profits, although there are areas where further enhancement may be required to sustain overall profitability.