Workday Inc (WDAY)

Operating 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
Operating income (ttm)	US$ in thousands	415,000	418,688	341,688	266,688	182,688	15,042	-99,279	-169,357	-222,200	-234,204	-183,938	-150,980	-116,450	-88,799	-126,821	-142,455	-248,599	-321,385	-417,558	-523,301
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
Operating profit margin		4.93%	5.17%	4.39%	3.58%	2.55%	0.22%	-1.50%	-2.67%	-3.63%	-3.98%	-3.25%	-2.79%	-2.26%	-1.81%	-2.73%	-3.21%	-5.83%	-7.82%	-10.59%	-13.87%

January 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $415,000K ÷ $8,411,000K
= 4.93%

Workday Inc's operating profit margin has shown a consistent improvement over the past few years. The company experienced negative operating profit margins in the range of -13.87% to -1.81% from April 2020 to October 2021. However, from January 2022 onwards, there has been a positive trend in its operating profit margins, with the company achieving a margin of 2.55% as of January 31, 2024.

The improvement in operating profit margins indicates that Workday Inc has been able to effectively control its operating expenses and generate higher profits from its core business operations. This positive trend suggests that the company's profitability and efficiency have been strengthening over the analyzed period, providing a favorable outlook for its financial performance. It also demonstrates the company's ability to adapt to changing market conditions and optimize its operational efficiency.