Financial statement analysis and common stock valuation

Analysis of Liquidity Ratios

Measures the adequacy of Workday Inc. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Workday Inc. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of Workday Inc. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Analysis of Long-term (Investment) Activity Ratios

Measures how efficiently Workday Inc. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
• Total Asset Turnover
• Equity Turnover

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently Workday Inc. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Price to FCFE (P/FCFE)

Free cash flow to equity is the cash flow available to Workday Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to Equity (FCFE)
• P to FCFE Ratio, Current
• P to FCFE Ratio, Historical

Cash Flow Statement

The cash flow statement provides information about Workday Inc. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Workday Inc. balance sheet.

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Workday Inc..

Common Stock Valuation Ratios

Relative valuation technique determine the value of Workday Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Analysis of Geographic Areas

Workday Inc. operates in 2 regions: U.S. and Other countries.

• Area Asset Turnover
• Revenues
• Long-lived assets

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.