Workday Inc (WDAY)

Operating return on assets (Operating ROA)

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Operating income US$ in thousands 415,000 183,000 -222,000 -116,450 -248,599
Total assets US$ in thousands 17,977,000 16,452,000 13,486,000 10,498,500 8,718,410
Operating ROA 2.31% 1.11% -1.65% -1.11% -2.85%

January 31, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $415,000K ÷ $17,977,000K
= 2.31%

Based on the provided data, Workday Inc's operating return on assets (ROA) has shown a fluctuating trend over the past five years.

In January 2021, the operating ROA was at a negative 2.85%, indicating that the company's operating income generated from its assets was insufficient to cover its asset base, potentially signaling operational inefficiencies or challenges.

However, by January 2024, the operating ROA improved to 1.11%, indicating that Workday Inc was able to generate operating income that exceeded its asset base, a positive sign of operational efficiency and effective asset utilization.

Furthermore, in January 2025, Workday Inc's operating ROA increased to 2.31%, showing continued improvement in generating operating income relative to its asset base.

Overall, Workday Inc's operating ROA has shown variability over the years, with a mix of negative and positive values. Analyzing the trend over time can help assess the company's operational performance and efficiency in utilizing its assets to generate income.