Analysis of Geographic Areas
Workday Inc. operates in 2 regions: U.S. and Other countries.
Area Asset Turnover
Workday Inc., asset turnover by geographic area
| Jan 31, 2026 | Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| U.S. | 6.64 | 5.29 | 4.55 | 3.88 | 3.27 | 2.78 |
| Other countries | 3.25 | 5.59 | 5.56 | 6.28 | 6.58 | 4.93 |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
Asset turnover ratios for the specified geographic areas demonstrate distinct trends over the observed period. The U.S. region exhibits a consistent upward trajectory, while asset turnover in other countries displays a more volatile pattern, ultimately declining in the later years.
- U.S. Asset Turnover
- The U.S. asset turnover ratio increased steadily from 2.78 in 2021 to 6.64 in 2026. This represents a more than doubling of the ratio over the five-year period. The rate of increase accelerated from 2023 onwards, suggesting improving efficiency in asset utilization within the U.S. market. Each year shows a positive change, indicating consistent improvement.
- Other Countries Asset Turnover
- Asset turnover in other countries began at 4.93 in 2021 and peaked at 6.58 in 2022. Following this peak, the ratio decreased to 5.56 in 2023 and 5.59 in 2024, remaining relatively stable before a significant decline to 3.25 in 2026. This suggests a potential decrease in the efficiency of asset utilization in these international markets, particularly in the final year of the observation period.
- Comparative Trends
- Initially, asset turnover was higher in other countries than in the U.S. However, the consistent growth in the U.S. ratio resulted in it surpassing that of other countries by 2024. The divergence between the two regions widened considerably in 2026, with the U.S. ratio more than double that of other countries. This indicates a growing disparity in asset utilization effectiveness between the two geographic areas.
The contrasting trends suggest differing operational dynamics and strategic priorities across the two regions. Further investigation may be warranted to understand the factors driving the decline in asset turnover in other countries, such as changes in market conditions, investment strategies, or operational inefficiencies.
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Area Asset Turnover: U.S.
Workday Inc.; U.S.; area asset turnover calculation
| Jan 31, 2026 | Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 7,176) | 6,332) | 5,457) | 4,682) | 3,845) | 3,249) |
| Long-lived assets | 1,080) | 1,197) | 1,199) | 1,206) | 1,174) | 1,170) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 6.64 | 5.29 | 4.55 | 3.88 | 3.27 | 2.78 |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 2026 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 7,176 ÷ 1,080 = 6.64
The financial performance related to U.S. operations demonstrates a consistent and accelerating positive trend in asset utilization between January 31, 2021, and January 31, 2026. Revenues have increased steadily over the period, while long-lived assets have exhibited more moderate fluctuations. This combination has resulted in a significant improvement in area asset turnover.
- Revenues
- Revenues originating from U.S. operations have increased from US$3,249 million in 2021 to US$7,176 million in 2026. This represents a cumulative growth of 121.1% over the five-year period. The year-over-year growth rates have also generally increased, indicating accelerating revenue expansion.
- Long-lived assets
- Long-lived assets in the U.S. experienced a slight increase from US$1,170 million in 2021 to US$1,206 million in 2023, before decreasing to US$1,080 million in 2026. This suggests a growing efficiency in generating revenue from the existing asset base, as revenue growth outpaced asset growth.
- Area asset turnover
- The area asset turnover ratio has increased substantially, moving from 2.78 in 2021 to 6.64 in 2026. This indicates that the company is becoming increasingly efficient at utilizing its assets to generate revenue within the U.S. market. The accelerating increase in this ratio from 2021 to 2026 suggests improving operational efficiency and effective asset management.
The observed trends suggest a strengthening relationship between asset investment and revenue generation within the U.S. area. The company appears to be successfully leveraging its asset base to drive revenue growth, resulting in a significantly improved asset turnover ratio.
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Area Asset Turnover: Other countries
Workday Inc.; Other countries; area asset turnover calculation
| Jan 31, 2026 | Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 2,376) | 2,114) | 1,802) | 1,534) | 1,293) | 1,069) |
| Long-lived assets | 732) | 378) | 324) | 244) | 197) | 217) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 3.25 | 5.59 | 5.56 | 6.28 | 6.58 | 4.93 |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
1 2026 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 2,376 ÷ 732 = 3.25
The financial performance related to assets in areas outside of the primary market demonstrates a fluctuating pattern over the analyzed period. Revenues generated from these areas consistently increased from 2021 to 2026, while long-lived assets experienced a more variable trajectory. This interplay significantly impacted the area asset turnover ratio.
- Revenues
- Revenues exhibited a steady upward trend, increasing from US$1,069 million in 2021 to US$2,376 million in 2026. This represents a compound annual growth rate of approximately 21.7%. The growth appears relatively consistent throughout the period, indicating sustained demand in these geographic areas.
- Long-lived Assets
- Long-lived assets initially decreased from US$217 million in 2021 to US$197 million in 2022. However, they subsequently increased, reaching US$732 million in 2026. The most substantial increase occurred between 2024 and 2026, suggesting significant investment in long-lived assets in these regions during that timeframe. This could be due to expansion initiatives or acquisitions.
- Area Asset Turnover
- The area asset turnover ratio initially improved from 4.93 in 2021 to 6.58 in 2022, indicating increased efficiency in generating revenue from assets. The ratio then decreased to 6.28 in 2023 and further to 5.56 in 2024. A slight increase to 5.59 was observed in 2025, but a substantial decline to 3.25 occurred in 2026. This decrease in 2026 coincides with the significant increase in long-lived assets, suggesting that the recent investments have not yet translated into proportional revenue gains, or that the asset base is temporarily inflated. The ratio’s volatility suggests a dynamic relationship between revenue generation and asset deployment in these areas.
In summary, while revenue growth in these areas has been strong, the asset turnover ratio’s recent decline warrants further investigation. The substantial increase in long-lived assets in 2026, coupled with the reduced turnover, suggests a potential need to evaluate the efficiency of capital allocation and asset utilization in these geographic regions.
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Revenues
Workday Inc., revenues by geographic area
US$ in millions
| Jan 31, 2026 | Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| U.S. | 7,176) | 6,332) | 5,457) | 4,682) | 3,845) | 3,249) |
| Other countries | 2,376) | 2,114) | 1,802) | 1,534) | 1,293) | 1,069) |
| Total | 9,552) | 8,446) | 7,259) | 6,216) | 5,139) | 4,318) |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
Revenues demonstrate consistent growth across all reported geographic areas over the five-year period from January 31, 2021, to January 31, 2026. The U.S. consistently represents the largest portion of total revenue, while revenue from other countries exhibits a similar upward trajectory, albeit from a smaller base.
- U.S. Revenue Trend
- U.S. revenue increased steadily from US$3,249 million in 2021 to US$7,176 million in 2026. This represents a cumulative growth of 121.1% over the period. The year-over-year growth rates show a slight deceleration, moving from approximately 18.7% between 2021 and 2022, to around 15.8% between 2023 and 2026.
- International Revenue Trend
- Revenue from countries outside the U.S. also experienced consistent growth, rising from US$1,069 million in 2021 to US$2,376 million in 2026. This equates to a cumulative growth of 122.2% over the five years. Similar to U.S. revenue, the year-over-year growth rate shows a slight deceleration, from 20.8% between 2021 and 2022 to approximately 14.8% between 2023 and 2026.
- Total Revenue Trend
- Total revenue, the sum of U.S. and international revenue, grew from US$4,318 million in 2021 to US$9,552 million in 2026, representing a cumulative growth of 121.4%. The year-over-year growth rates follow the same pattern of slight deceleration as observed in the individual geographic areas, starting at 18.9% between 2021 and 2022 and ending at 15.3% between 2023 and 2026.
- Geographic Revenue Contribution
- The U.S. consistently accounted for approximately 75% of total revenue throughout the period. While the proportion remains relatively stable, the international segment’s contribution to total revenue increased slightly from approximately 24.7% in 2021 to 24.9% in 2026.
The observed deceleration in year-over-year growth rates for both U.S. and international revenues warrants further investigation. While growth remains positive, understanding the factors contributing to this deceleration is crucial for future revenue forecasting and strategic planning.
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Long-lived assets
Workday Inc., long-lived assets by geographic area
US$ in millions
| Jan 31, 2026 | Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| U.S. | 1,080) | 1,197) | 1,199) | 1,206) | 1,174) | 1,170) |
| Other countries | 732) | 378) | 324) | 244) | 197) | 217) |
| Total | 1,812) | 1,575) | 1,523) | 1,451) | 1,371) | 1,387) |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).
The value of long-lived assets held in the U.S. has demonstrated relative stability over the observed period, with a slight decline in the most recent two years. Conversely, long-lived assets located in other countries have exhibited a significant upward trend, particularly in the later years of the period. Total long-lived assets have generally increased, driven primarily by growth outside of the U.S.
- U.S. Assets
- The value of long-lived assets in the U.S. began at US$1,170 million in 2021 and increased marginally to US$1,174 million in 2022. A further increase to US$1,206 million was noted in 2023, followed by a slight decrease to US$1,199 million in 2024 and US$1,197 million in 2025. A more pronounced decline to US$1,080 million is observed in 2026. This suggests a potential shift in capital allocation away from the U.S. or increased asset depreciation/disposal.
- Assets in Other Countries
- Long-lived assets held in other countries started at US$217 million in 2021 and decreased to US$197 million in 2022. A recovery was seen in 2023, with the value rising to US$244 million. Subsequent years show substantial growth, reaching US$324 million in 2024, US$378 million in 2025, and a significant increase to US$732 million in 2026. This indicates a substantial and accelerating investment in long-lived assets outside of the U.S.
- Total Assets
- Total long-lived assets experienced a slight decrease from US$1,387 million in 2021 to US$1,371 million in 2022. Growth was then observed in subsequent years, reaching US$1,451 million in 2023, US$1,523 million in 2024, and US$1,575 million in 2025. The most significant increase occurred between 2025 and 2026, with total assets reaching US$1,812 million. The increasing trend in total assets is largely attributable to the growth in assets located in other countries, offsetting the relative stability and eventual decline in U.S. assets.
The composition of long-lived assets is shifting, with an increasing proportion located outside of the U.S. This trend warrants further investigation to understand the strategic rationale behind these capital allocation decisions and potential implications for future financial performance.
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