Workday Inc. (NASDAQ:WDAY)

Total Asset Turnover

Both reported and adjusted total asset turnover demonstrate a declining trend from 2020 through 2024, with reported turnover decreasing from 0.53 to 0.44 and adjusted turnover moving from 0.58 to 0.5 in the same period. In 2025, there is a slight recovery, with reported turnover rising to 0.47 and adjusted to 0.52, suggesting a potential improvement in asset utilization efficiency toward the end of the timeframe.

Current Ratio

The reported current ratio exhibits growth over the years, increasing from 1.04 in 2020 to a peak of 1.97 in 2024 before slightly decreasing to 1.9 in 2025. The adjusted current ratio displays a similar, yet more pronounced, upward trend, starting at 4.16 in 2020, experiencing some decline until 2022, and then rising sharply to nearly 10 by 2024 and maintaining this high level into 2025. This indicates a substantial strengthening in liquidity when adjusted for specific factors.

Debt to Equity Ratio

Reported debt to equity ratios fluctuate over the period, initially increasing from 0.51 in 2020 to 0.55 in 2021, then decreasing progressively to 0.33 by 2025, reflecting reduced reliance on debt relative to equity. Adjusted ratios follow a similar trajectory with lower absolute values, declining steadily from 0.33 in 2020 to 0.27 in 2025, confirming an overall trend toward lower financial leverage.

Debt to Capital Ratio

There is a consistent decrease in both reported and adjusted debt to capital ratios. The reported ratio decreases from 0.34 to 0.25, while the adjusted ratio declines from 0.25 to 0.21 over the six-year span. This trend supports a gradual reduction in the proportion of debt financing within the company’s capital structure.

Financial Leverage

Reported financial leverage steadily declines between 2020 and 2025, dropping from 2.74 to 1.99, indicating a decrease in use of debt relative to equity or assets. Adjusted financial leverage remains relatively stable with minor fluctuations but shows a slight declining pattern overall, moving from 1.42 to 1.34, which aligns with observed improvements in the company’s capital structure management.

Net Profit Margin

Reported net profit margin shows significant volatility. It starts negative at -13.25% in 2020, improves to a small positive margin in 2022 (0.57%), declines again in 2023 (-5.9%), and then turns strongly positive in 2024 (19.02%) before decreasing to 6.23% in 2025. The adjusted net profit margin exhibits a more consistent improvement from negative territory in 2020 (-2.65%) to robust positive margins in the recent years, peaking at 12.37% in 2025, indicating improved profitability when adjustments are considered.

Return on Equity (ROE)

Reported ROE reflects negative returns in the early years, with recovery beginning in 2022. The figure falls again in 2023 but rises substantially to 17.09% in 2024 before moderating to 5.82% in 2025. Adjusted ROE demonstrates a positive trend overall, moving from -2.2% to 8.7% by 2025, suggesting an improvement in shareholder returns under adjusted measures.

Return on Assets (ROA)

Reported ROA remains negative initially, improving slightly to a positive 0.28% in 2022, dropping again in 2023, and then increasing to 8.39% in 2024 with a decline to 2.93% in 2025. Adjusted ROA shows a steady upward trend from -1.55% in 2020 to 6.47% in 2025, which points to enhanced asset profitability once adjustments are accounted for.

The analysis of the financial data over the six-year period reveals consistent growth in both revenues and total assets. Revenues increased steadily from $3,627 million in 2020 to $8,446 million in 2025, indicating a robust upward trend with compound annual growth. Correspondingly, total assets expanded significantly from $6,816 million to $17,977 million during the same period, reflecting a strategic accumulation or investment in asset base to support ongoing business operations and expected future growth.

Examining the reported total asset turnover ratio, which measures the efficiency of assets in generating revenues, there is a gradual decline from 0.53 in 2020 to a low of 0.44 in 2024, with a slight rebound to 0.47 in 2025. This decrease suggests that asset utilization efficiency diminished over most of the period, potentially due to asset growth outpacing revenue growth. The modest improvement in 2025 may indicate an initial corrective adjustment or enhanced efficiency in asset deployment.

When considering adjusted figures, which typically normalize certain items for more accurate comparison, adjusted revenues increase consistently from $3,987 million in 2020 to $8,866 million in 2025, mirroring the trend in reported revenues but at slightly higher levels. Adjusted total assets follow a similar rising trajectory, increasing from $6,816 million to $16,948 million across the years.

The adjusted total asset turnover ratio also exhibits a declining pattern from 0.58 in 2020 to a low of 0.49 in 2023 but then shows a modest increase to 0.52 in 2025. This pattern mirrors the reported total asset turnover trend but at higher ratios, implying that the adjustments provide a perspective on slightly better asset efficiency. The decline over the initial years indicates that the growth in adjusted total assets slightly outpaced revenue growth, leading to diminished turnover. The subsequent improvement signals efforts or changes enhancing asset utilization efficiency toward the end of the period.

Overall, the financial data depicts a company experiencing solid revenue growth alongside substantial asset base expansion. Despite this positive growth, asset turnover ratios suggest some reduction in asset efficiency in revenue generation over most years, partially reversing near the end of the analyzed period. This indicates potential areas for management focus on maximizing asset productivity as the company grows.

Revenue Growth

Continuous and strong growth from $3.6 billion to $8.4 billion (2020-2025), reflecting business expansion.

Total Assets

Major increase from $6.8 billion to nearly $18 billion, supporting the scaling operations.

Asset Turnover Ratios

Declined initially, indicating decreasing asset utilization efficiency, with slight recovery in recent years.

Adjusted Financials

Show similar trends as reported data but suggest relatively better efficiency and consistency after adjustment.

Strategic Insights

Management may need to focus on improving the efficiency of asset use to sustain growth and profitability.

The financial data reveals notable trends in liquidity over the analyzed periods. Current assets show a consistent upward trajectory, increasing from 3,095 million US dollars in 2020 to 10,545 million US dollars in 2025. This steady growth indicates improving asset availability to cover short-term obligations.

Current liabilities exhibit a fluctuating pattern. Starting at 2,969 million US dollars in 2020, they initially rise, peaking at 5,068 million US dollars in 2022, before decreasing in 2023 to 4,628 million US dollars, then rising again moderately to 5,548 million US dollars by 2025. This suggests some variability in the company's short-term obligations, but generally remaining high in recent years.

The reported current ratio, which measures the ability to cover current liabilities with current assets, remains close to parity in the initial years, moving from 1.04 in 2020 to a low of 1.03 in 2022. Starting 2023, it increases significantly, reaching 1.97 in 2024 before a slight decline to 1.9 in 2025. This improvement signals strengthened liquidity positions, particularly from 2023 onwards.

Examining the adjusted figures provides further insight. Adjusted current assets closely track reported current assets, reinforcing the observed growth trend. However, adjusted current liabilities display a markedly different pattern, with values substantially lower than reported liabilities and a decreasing trend from 1,957 million US dollars in 2022 to around 1,081 million US dollars in 2025.

This divergence results in a substantially higher adjusted current ratio, which starts at 4.16 in 2020, declines to 2.67 in 2022, and then exhibits a sharp increase to 7.59 in 2023, peaking at 9.97 in 2024 and slightly decreasing to 9.76 in 2025. These figures suggest that when liabilities are adjusted—possibly excluding certain short-term obligations—the company's liquidity is significantly stronger than the reported current ratio indicates.

Overall, the data reflects a company with improving liquidity and asset growth over the period. The disparity between reported and adjusted current liabilities and accordingly the current ratios indicates a potentially conservative initial liability recognition or reclassification that enhances liquidity appearance upon adjustment. The sustained high adjusted current ratios in the latest years point to a robust short-term financial position.

The analysis of the financial data reveals several notable trends in the company's debt and equity structure over the periods assessed.

Total Debt

Total debt increased from 1,262 million USD in 2020 to 2,984 million USD in 2025. This represents more than a twofold increase across the six-year span. The growth was relatively steady, with a marked rise between 2021 and 2023, moving from 1,795 million to 2,976 million USD.

Stockholders’ Equity

Stockholders’ equity demonstrated consistent and significant growth throughout the period, rising from 2,487 million USD in 2020 to 9,034 million USD in 2025. The equity increased more than threefold, with a particularly strong upward trend from 2022 onward.

Reported Debt to Equity Ratio

The reported debt to equity ratio exhibited fluctuation but an overall decline over the examined years. Starting at 0.51 in 2020, it increased slightly to 0.55 in 2021, then decreased to 0.33 by 2025, indicating a reduction in debt relative to equity.

Adjusted Total Debt

Adjusted total debt rose from 1,570 million USD in 2020 to 3,362 million USD in 2025. Despite some variability, the general trajectory indicates a steady increase in adjusted liabilities, mirroring the trend in reported total debt but at a higher baseline level.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity showed substantial growth, increasing from 4,797 million USD in 2020 to 12,616 million USD in 2025. This increase parallels the growth in reported equity but reflects a larger equity base when adjustments are considered.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio consistently declined from 0.33 in 2020 to 0.27 in 2025, suggesting an improvement in the company's leverage position when accounting for adjustments. The ratio remained below 0.40 across most periods, indicating moderate reliance on debt financing relative to equity.

Overall, the data reflects strong growth in equity values outpacing debt accumulation, leading to improving leverage ratios. Both reported and adjusted figures indicate enhanced financial stability and potentially improved creditworthiness over time.

The financial data reveals several notable trends regarding the company's debt and capital structure over the analyzed years.

Total Debt and Total Capital

Total debt exhibited a general upward trajectory from 1,262 million US dollars in 2020 to 2,984 million US dollars in 2025. This increase was particularly pronounced between 2021 and 2023, coinciding with a rise in total capital from 3,749 million to 8,562 million US dollars during the same period. Total capital consistently increased each year, reaching 12,018 million US dollars by 2025, reflecting substantial growth in the company's overall capital base.

Reported Debt to Capital Ratio

The reported debt to capital ratio fluctuated over the period, beginning at 0.34 in 2020, peaking at 0.35 in 2021 and again in 2023, but ultimately declining to 0.25 by 2025. This suggests that although the company increased its debt levels, capital growth outpaced debt growth in later years, resulting in a lower proportion of debt relative to total capital.

Adjusted Total Debt and Adjusted Total Capital

Adjusted total debt values were consistently higher than reported total debt, increasing from 1,570 million in 2020 to 3,362 million in 2025. Similarly, adjusted total capital increased steadily from 6,366 million to 15,978 million US dollars during the same period. Both adjusted debt and capital figures indicate a broader recognition of the company's financial obligations and resources.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio remained lower than the reported ratio throughout, starting at 0.25 in 2020, experiencing a slight rise to 0.27 in 2021, then declining to 0.21 by 2025. This declining trend indicates an improving leverage position when considering adjusted financial metrics, reflecting cautious debt management in relation to capital expansion.

Overall, the data suggests a strategy of capital expansion accompanied by increased borrowing, with efforts to maintain or reduce leverage ratios over time. The decreasing debt to capital ratios, especially in adjusted terms, indicate improved financial stability and capacity to support growth while managing debt levels prudently.

Total Assets

Total assets showed consistent growth over the six-year period, increasing from 6,816 million USD in early 2020 to 17,977 million USD by early 2025. This indicates a sustained expansion of the company's asset base, with particularly notable increments between 2022 and 2025.

Stockholders’ Equity

Stockholders’ equity exhibited a strong upward trajectory, more than tripling from 2,487 million USD in 2020 to 9,034 million USD in 2025. The most significant increases occurred in the last two years, signaling a solid strengthening of the company’s net worth.

Reported Financial Leverage

The reported financial leverage ratio declined steadily from 2.74 in 2020 to 1.99 in 2025. This decline reflects a relative decrease in debt or liabilities compared to equity, suggesting improved financial stability and a lower reliance on external financing over time.

Adjusted Total Assets

The adjusted total assets closely followed the trend of reported total assets, rising from 6,816 million USD in 2020 to 16,948 million USD in 2025. The smaller values in 2024 and 2025 compared to reported assets may indicate adjustments for certain asset considerations or reclassifications, but the overall growth trend remains strong.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increased consistently from 4,797 million USD in 2020 to 12,616 million USD in 2025. The adjusted equity values are notably higher than reported equity figures throughout the period, implying the inclusion of additional components or revaluations enhancing the shareholders’ equity base.

Adjusted Financial Leverage

Adjusted financial leverage fluctuated mildly but remained in a range suggesting moderate leverage, moving from 1.42 in 2020 to 1.34 in 2025. This indicates a stable credit position when considering adjusted metrics, with a slight improvement in reducing the leverage ratio towards the end of the period.

Over the analyzed period, revenue demonstrated a consistent upward trajectory. Reported revenues increased steadily each year, rising from 3,627 million US dollars in 2020 to 8,446 million US dollars in 2025. Adjusted revenues followed a similar pattern, starting slightly higher than reported revenues and growing from 3,987 million US dollars in 2020 to 8,866 million US dollars in 2025. This indicates ongoing growth in the core business activities.

Net income (loss) figures show considerable variability. Reported net income was negative in most years except 2022, 2024, and 2025. Specifically, net income shifted from a significant loss of 481 million US dollars in 2020 to a positive 29 million US dollars in 2022, dropped again to a loss of 367 million US dollars in 2023, then increased sharply to 1,381 million US dollars in 2024 before declining to 526 million US dollars in 2025. Adjusted net income mirrored a similar trend but with less volatility and more instances of profitability, moving from a loss of 106 million US dollars in 2020 into positive territory by 2022 and reaching 1,097 million US dollars by 2025.

The reported net profit margin reflects the fluctuations in net income relative to revenues. It started from a negative 13.25% margin in 2020, improved to near breakeven or positive margin in 2022, then regressed to negative in 2023, followed by a significant positive margin of 19.02% in 2024 and a moderate 6.23% in 2025. Adjusted net profit margins corroborate these observations but provide a smoother progression. After beginning at a negative 2.65% in 2020, the adjusted margin improved progressively to 12.37% by 2025 with some fluctuations, including a dip in 2023.

Overall, the data illustrate a company experiencing substantial growth in revenues accompanied by a path toward consistent profitability, especially when considering adjusted figures. The volatility in reported net income and profit margins suggests the presence of non-recurring items or adjustments that impact profitability in certain years. Adjusted metrics present a clearer view of operational performance with improving trends in net income and margin percentages over the assessed period.

Net Income (Loss)

The net income exhibits significant volatility over the analyzed period. It began with a substantial loss of $481 million in early 2020, improving to a loss of $282 million in 2021. A positive net income of $29 million was recorded in 2022, followed by another decline to a loss of $367 million in 2023. However, in 2024, there was a marked improvement, with net income reaching $1,381 million, before declining again to $526 million in 2025. This pattern indicates irregular profitability with a peak in 2024.

Stockholders’ Equity

Stockholders’ equity showed a consistent upward trend throughout the period under review. It increased steadily from $2,487 million in 2020 to $9,034 million in 2025. This growth represents an overall strengthening of the company’s capital base, indicative of retained earnings accumulation and/or equity injections.

Reported Return on Equity (ROE)

The reported ROE closely mirrors the fluctuations in net income, reflecting negative returns in most years except for 2022 and 2024. Initially, the ROE was negative at -19.33% in 2020, improving to -8.62% in 2021, and turning slightly positive at 0.65% in 2022. It slipped again to -6.57% in 2023 before recovering strongly to 17.09% in 2024, then moderating to 5.82% in 2025. The variability suggests fluctuating profitability relative to equity, with an especially strong performance in 2024.

Adjusted Net Income (Loss)

When adjusted, net income demonstrates a more stable and generally improving trend. Starting from a loss of $106 million in 2020 and improving to a loss of $29 million in 2021, it turned positive with $613 million in 2022. Despite a reduction to $123 million in 2023, it again rose significantly to $784 million in 2024 and further to $1,097 million in 2025. The adjusted figures suggest operational improvements and highlight underlying profitability more clearly than the reported net income.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity also increased consistently, from $4,797 million in 2020 to $12,616 million in 2025. This parallels the trend seen in the reported equity but at a higher base, indicating that adjustments likely reconcile for valuation or accounting differences, providing a refined measure of the company’s equity.

Adjusted Return on Equity (ROE)

Adjusted ROE reflects a generally positive and improving performance over time. Beginning at -2.2% in 2020 and improving to -0.5% in 2021, it rose significantly to 7.94% in 2022. Although this decreased to 1.34% in 2023, it rebounded to 7.03% in 2024 and continued improving to 8.7% in 2025. This trend indicates increasing efficiency in generating returns from equity under adjusted considerations and highlights a more consistent profitability trajectory than the reported figures suggest.

The financial data reveals various trends in profitability, asset growth, and returns over the analyzed periods.

Net Income (Loss)

The company’s net income exhibited significant volatility. It showed a loss of $481 million in 2020, which improved to a smaller loss of $282 million in 2021. In 2022, this turned into a modest profit of $29 million, followed by a deterioration back to a loss of $367 million in 2023. The years 2024 and 2025 display a strong recovery with profits of $1,381 million and $526 million, respectively, indicating a positive turnaround in profitability.

Total Assets

Total assets consistently increased throughout the period, rising from $6,816 million in 2020 to $17,977 million in 2025. This steady growth indicates continued investment and expansion of asset base, with a particularly notable acceleration in the years following 2022.

Reported Return on Assets (ROA)

Reported ROA mirrored the net income trend, starting with negative returns of -7.05% in 2020 and improving to -3.24% in 2021. It reached a small positive return in 2022 at 0.28% but again became negative in 2023 at -2.72%. The ratio then recovered significantly to 8.39% in 2024 and remained positive at 2.93% in 2025, reflecting improved efficiency in generating profit from assets.

Adjusted Net Income (Loss)

Adjusted net income showed less volatility compared to reported net income and followed a more positive trajectory overall. Losses narrowed from $106 million in 2020 to $29 million in 2021, then transitioned to sizable profits of $613 million in 2022 and $123 million in 2023. The upward trend strengthened with $784 million in 2024 and further increased to $1,097 million in 2025, signifying solid underlying profitability when adjustments are considered.

Adjusted Total Assets

Adjusted total assets similarly grew from $6,816 million in 2020 to $16,948 million in 2025. The pace of asset growth improved noticeably from 2023 onwards, paralleling the pattern in total assets and supporting the firm’s expansion efforts.

Adjusted Return on Assets (ROA)

Adjusted ROA followed a general improving trend, starting from negative -1.55% in 2020 and approaching zero at -0.34% in 2021. It then increased sharply to 5.84% in 2022, dipped to 0.91% in 2023, before rebounding to 5.09% in 2024 and further improving to 6.47% in 2025. This suggests enhanced asset utilization and improved profitability after adjustment factors, despite some fluctuations.