Workday Inc (WDAY)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 115,000 | 115,383 | 114,918 | 114,454 | 114,454 | 114,620 | 115,711 | 117,335 | 102,353 | 77,879 | 52,413 | 26,443 | 16,602 | 28,122 | 40,332 | 55,444 | 68,806 | 69,617 | 69,452 | 64,623 |
| Interest coverage | 4.37 | 5.15 | 5.11 | 5.12 | 4.11 | 2.22 | 0.90 | -0.37 | -1.54 | -2.41 | -2.78 | -0.11 | 1.97 | 2.11 | 0.08 | -2.02 | -3.00 | -3.82 | -5.15 | -7.07 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $503,000K ÷ $115,000K
= 4.37
Workday Inc's interest coverage ratio reflects the company's ability to meet its interest obligations with its operating income.
Based on the data provided:
- The interest coverage ratio was negative in the periods from April 2020 to July 2021, indicating that Workday Inc was not generating enough operating income to cover its interest expenses during those periods. This may raise concerns about the company's financial health and ability to service its debt obligations.
- Starting from October 2021, the interest coverage ratio turned positive and increased gradually, showing an improvement in Workday Inc's ability to cover its interest payments with its operating income.
- As of January 2025, the interest coverage ratio stood at 4.37, indicating that the company's operating income was more than four times its interest expenses. This suggests a healthier financial position for Workday Inc in meeting its interest obligations.
Overall, the trend in Workday Inc's interest coverage ratio shows a significant improvement from negative values to positive values over the analyzed period, reflecting a positive development in the company's ability to handle its interest expenses.
Peer comparison
Jan 31, 2025