Workday Inc (WDAY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 503,000 | 594,419 | 587,197 | 586,545 | 470,000 | 254,211 | 103,901 | -43,154 | -157,597 | -187,973 | -145,779 | -3,017 | 32,626 | 59,393 | 3,178 | -111,782 | -206,328 | -266,156 | -357,784 | -457,009 |
| Long-term debt | US$ in thousands | 2,984,000 | 2,983,000 | 2,982,000 | 2,981,000 | 2,980,000 | 2,978,800 | 2,977,840 | 2,976,890 | 2,976,000 | 2,974,980 | 2,974,020 | 2,973,070 | 617,354 | 635,994 | 654,633 | 673,273 | 691,913 | 701,178 | 1,752,000 | 1,508,780 |
| Total stockholders’ equity | US$ in thousands | 9,034,000 | 8,624,000 | 8,345,000 | 8,163,000 | 8,082,000 | 6,625,000 | 6,274,000 | 5,942,000 | 5,585,000 | 5,409,110 | 5,127,810 | 4,780,810 | 4,535,080 | 4,215,820 | 3,867,990 | 3,405,440 | 3,277,830 | 3,078,050 | 2,838,480 | 2,602,000 |
| Return on total capital | 4.19% | 5.12% | 5.18% | 5.26% | 4.25% | 2.65% | 1.12% | -0.48% | -1.84% | -2.24% | -1.80% | -0.04% | 0.63% | 1.22% | 0.07% | -2.74% | -5.20% | -7.04% | -7.79% | -11.12% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $503,000K ÷ ($2,984,000K + $9,034,000K)
= 4.19%
Workday Inc's return on total capital has shown a fluctuating trend over the reported periods. Initially, from April 30, 2020, to January 31, 2022, the return on total capital was negative, indicating that the company was not effectively generating returns on the capital invested in its operations. However, starting from July 31, 2022, there was a slight improvement as the return on total capital turned positive.
The positive trend continued, with the return on total capital increasing gradually from July 31, 2022, to July 31, 2024. During this period, the company experienced steady growth in returns relative to the total capital employed. However, there was a slight decrease in the return on total capital from April 30, 2024, to January 31, 2025, indicating a potential challenge in maintaining or further increasing the returns generated against the total capital invested.
Overall, it is important for investors and stakeholders to monitor Workday Inc's return on total capital to assess the company's efficiency in generating returns from the capital invested and to evaluate its financial performance and profitability over time.
Peer comparison
Jan 31, 2025