Workday Inc (WDAY)

Debt-to-assets ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Long-term debt	US$ in thousands	2,984,000	2,980,000	2,976,000	617,354	691,913
Total assets	US$ in thousands	17,977,000	16,452,000	13,486,000	10,498,500	8,718,410
Debt-to-assets ratio		0.17	0.18	0.22	0.06	0.08

January 31, 2025 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,984,000K ÷ $17,977,000K
= 0.17

The debt-to-assets ratio for Workday Inc has shown fluctuations over the five-year period from January 2021 to January 2025.

In January 2021, the ratio was 0.08, indicating that only 8% of the company's assets were financed by debt. This suggests a relatively low level of leverage and financial risk.

By January 2022, the ratio decreased to 0.06, indicating an improved financial position with even less reliance on debt to finance its assets.

However, in January 2023, an increase in the debt-to-assets ratio to 0.22 was observed, signaling an increase in the proportion of assets funded by debt. This could suggest a higher level of financial risk and potential concerns about the company's ability to repay its obligations.

Subsequently, there was a slight decrease in the ratio to 0.18 by January 2024, followed by a further dip to 0.17 by January 2025. These reductions indicate a moderation in the company's reliance on debt financing, potentially improving its overall financial stability and health.

Overall, despite some fluctuations, Workday Inc's debt-to-assets ratio demonstrates a generally conservative approach to leverage management, with efforts to maintain a healthy balance between debt and equity in its capital structure over the five-year period.