Workday Inc (WDAY)

Financial leverage ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Total assets	US$ in thousands	17,977,000	16,452,000	13,486,000	10,498,500	8,718,410
Total stockholders’ equity	US$ in thousands	9,034,000	8,082,000	5,585,000	4,535,080	3,277,830
Financial leverage ratio		1.99	2.04	2.41	2.31	2.66

January 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,977,000K ÷ $9,034,000K
= 1.99

The financial leverage ratio of Workday Inc has shown a decreasing trend over the past five years. Starting at 2.66 in January 31, 2021, it dropped to 1.99 by January 31, 2025. This indicates that the company has been reducing its reliance on debt financing relative to equity over the period, signaling improved financial stability and lower risk levels. A decreasing trend in financial leverage ratio is generally seen as positive as it suggests better financial health and an ability to fund operations more comfortably without excessive debt burden.