Workday Inc (WDAY)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	4,787,000	4,613,140	4,426,020	4,233,524	4,027,693	3,810,776	3,615,129	3,432,707	3,302,220	3,192,782	3,094,305	2,982,069	2,861,352	3,241,247	3,092,323	2,984,201	2,853,431	2,698,050	2,561,304	2,407,312
Revenue (ttm)	US$ in thousands	8,411,000	8,100,880	7,777,210	7,455,860	7,150,680	6,870,140	6,607,800	6,352,880	6,118,760	5,891,520	5,652,390	5,405,600	5,153,000	4,894,580	4,649,310	4,433,030	4,266,370	4,110,989	3,943,396	3,774,015
Gross profit margin		56.91%	56.95%	56.91%	56.78%	56.33%	55.47%	54.71%	54.03%	53.97%	54.19%	54.74%	55.17%	55.53%	66.22%	66.51%	67.32%	66.88%	65.63%	64.95%	63.79%

January 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,787,000K ÷ $8,411,000K
= 56.91%

Workday Inc has demonstrated varying levels of gross profit margin over the reporting periods provided in the dataset. The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold, indicating the company's efficiency in producing goods and services.

The trend of Workday Inc's gross profit margin shows a generally increasing pattern from April 30, 2020, to January 31, 2022, reaching a peak of 67.32% on April 30, 2021. However, starting from January 31, 2022, the gross profit margin began to decline and fluctuate around the mid-50% range, with a slight increase noted in recent periods up to January 31, 2025.

The decrease in gross profit margin from the peak levels may indicate various factors such as an increase in production costs, pricing pressures, changes in product mix, or inefficiencies in operations. It is essential for Workday Inc to closely monitor and address these factors to maintain a healthy level of profitability.

Overall, analyzing the gross profit margin provides insights into Workday Inc's ability to generate profits from its core operations and serves as a key metric for evaluating the company's cost management and pricing strategies.