Workday Inc (WDAY)

Solvency ratios

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
Debt-to-assets ratio 0.17 0.18 0.18 0.19 0.18 0.21 0.22 0.22 0.22 0.24 0.22 0.23 0.06 0.07 0.07 0.08 0.08 0.09 0.23 0.21
Debt-to-capital ratio 0.25 0.26 0.26 0.27 0.27 0.31 0.32 0.33 0.35 0.35 0.37 0.38 0.12 0.13 0.14 0.17 0.17 0.19 0.38 0.37
Debt-to-equity ratio 0.33 0.35 0.36 0.37 0.37 0.45 0.47 0.50 0.53 0.55 0.58 0.62 0.14 0.15 0.17 0.20 0.21 0.23 0.62 0.58
Financial leverage ratio 1.99 1.90 1.95 1.95 2.04 2.10 2.19 2.23 2.41 2.29 2.58 2.68 2.31 2.24 2.36 2.53 2.66 2.55 2.64 2.78

Workday Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio shows the proportion of Workday's assets financed by debt. Workday's debt-to-assets ratio has been gradually decreasing over the years, indicating a lower reliance on debt to fund its assets. This trend suggests improved financial health and lower risk of insolvency.

2. Debt-to-capital ratio: The debt-to-capital ratio reflects the extent of a company's capital structure funded by debt. Workday's debt-to-capital ratio has shown a similar declining trend, indicating a decrease in the proportion of debt in its capital structure. This suggests a stronger financial position and reduced financial risk.

3. Debt-to-equity ratio: The debt-to-equity ratio measures the proportion of financing provided by debt and equity. Workday's decreasing debt-to-equity ratio over time indicates a decreasing reliance on debt relative to equity for financing its operations. This trend signifies a more stable and sustainable capital structure.

4. Financial leverage ratio: This ratio assesses the company's financial risk by revealing the proportion of total assets financed by debt. Workday's decreasing financial leverage ratio indicates a reduction in financial risk and a more conservative approach towards debt financing.

Overall, based on the declining trend in these solvency ratios, Workday Inc appears to be managing its long-term financial obligations effectively, strengthening its financial position and reducing the risk of default.

Coverage ratios

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
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

The interest coverage ratio of Workday Inc shows a fluctuating trend over the reported periods. The ratio was negative in the earlier periods, indicating that the company's operating income was insufficient to cover its interest expenses. However, the ratio started to improve from July 31, 2021, onwards, reaching positive levels. This improvement suggests that Workday Inc's operating income became more sufficient to cover its interest expenses and indicates a strengthening financial position in terms of its ability to meet its interest obligations. The ratio continued to show a positive trend, with minor fluctuations in some periods, implying a more stable financial position regarding interest coverage. Overall, the increasing trend in the interest coverage ratio indicates an enhancement in Workday Inc's ability to comfortably meet its interest payment obligations.

See also:

Workday Inc Solvency Ratios (Quarterly Data)