Workday Inc (WDAY)

Return on assets (ROA)

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Net income	US$ in thousands	526,000	1,381,000	-367,000	29,373	-282,431
Total assets	US$ in thousands	17,977,000	16,452,000	13,486,000	10,498,500	8,718,410
ROA		2.93%	8.39%	-2.72%	0.28%	-3.24%

January 31, 2025 calculation

ROA = Net income ÷ Total assets
= $526,000K ÷ $17,977,000K
= 2.93%

Based on the provided data, Workday Inc's return on assets (ROA) has shown fluctuation over the past five years. In January 2021, the ROA was a negative 3.24%, indicating that the company was not effectively utilizing its assets to generate profits. By January 2022, the ROA improved to 0.28%, suggesting a slight turnaround in asset efficiency.

However, in January 2023, the ROA dropped to a negative 2.72%, indicating a decline in profitability relative to the assets employed. The following year, in January 2024, Workday Inc experienced a significant improvement in ROA to 8.39%, which suggests a strong performance in generating earnings from its assets.

In the most recent data available for January 2025, the ROA stands at 2.93%, indicating continued efficiency in utilizing assets to generate profits. Overall, Workday Inc's ROA has displayed variability over the years, with improvements seen in recent periods, suggesting a mixed performance in asset utilization and profitability.