Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Workday Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2020-01-31).
- Debt to equity and related ratios
- The debt to equity ratio exhibits a generally declining trend from 0.51 in January 2020 to 0.33 in January 2025, indicating a gradual reduction in the company's reliance on debt financing relative to equity. When including operating lease liabilities, the ratio follows a similar downward pattern, decreasing from 0.63 to 0.37 over the same period. This suggests a consistent deleveraging strategy and improved equity base relative to total debt obligations.
- Debt to capital and related metrics
- Debt to capital shows a decline from 0.34 to 0.25 between 2020 and 2025, implying a diminishing proportion of debt within the company’s capital structure. Including operating lease liabilities, the debt to capital ratio decreases from 0.39 to 0.27, reinforcing the conclusion of lower debt dependency when considering comprehensive obligations. This trend highlights a strengthening of the company's financial stability through reduced leverage.
- Debt to assets and related ratios
- The debt to assets ratio remains relatively stable but declines slightly from 0.19 to 0.17 between 2020 and 2025, suggesting that debt forms a smaller portion of total assets over time. Including operating lease liabilities, the ratio moves from 0.23 to 0.19, again demonstrating a marginal improvement in the company's capacity to cover assets with less debt liability.
- Financial leverage
- Financial leverage shows a notable decrease from 2.74 in 2020 to 1.99 in 2025. This indicates that the company is relying progressively less on borrowed funds relative to its equity, which may reflect improved capitalization or a strategic shift toward equity financing.
- Interest coverage
- Interest coverage ratios show significant volatility over the periods observed. Initially, the ratio is negative at -7.22 in 2020 and improves to 6.60 by 2025, reflecting a transition from poor to strong ability to cover interest expenses with operating earnings. There are fluctuations during the intervening years, with occasional negative values indicating periods of insufficient earnings to meet interest obligations. The overall improving trend points to enhanced profitability or operational efficiency.
- Fixed charge coverage
- Fixed charge coverage follows a similar pattern to interest coverage, beginning with a negative ratio (-2.35 in 2020) and advancing to a positive ratio of 3.69 by 2025. This suggests a recovery and strengthening in the company's capacity to cover all fixed charges, including lease obligations and interest, signaling improved financial health and operational performance.
Debt Ratios
Coverage Ratios
Debt to Equity
Workday Inc., debt to equity calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Debt, current | —) | —) | —) | 1,222) | 1,103) | 244) | |
| Debt, noncurrent | 2,984) | 2,980) | 2,976) | 617) | 692) | 1,018) | |
| Total debt | 2,984) | 2,980) | 2,976) | 1,840) | 1,795) | 1,262) | |
| Stockholders’ equity | 9,034) | 8,082) | 5,586) | 4,535) | 3,278) | 2,487) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.33 | 0.37 | 0.53 | 0.41 | 0.55 | 0.51 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Accenture PLC | — | 0.04 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | — | 0.40 | 0.22 | 0.29 | 0.28 | 0.31 | |
| Cadence Design Systems Inc. | — | 0.53 | 0.19 | 0.27 | 0.13 | 0.14 | |
| CrowdStrike Holdings Inc. | 0.23 | 0.32 | 0.51 | 0.72 | 0.85 | 0.00 | |
| Fair Isaac Corp. | — | — | — | — | — | 2.54 | |
| International Business Machines Corp. | — | 2.01 | 2.51 | 2.32 | 2.74 | 2.99 | |
| Intuit Inc. | — | 0.33 | 0.35 | 0.42 | 0.21 | 0.66 | |
| Microsoft Corp. | — | 0.29 | 0.31 | 0.39 | 0.50 | 0.62 | |
| Oracle Corp. | 4.67 | 9.98 | 84.33 | — | 16.08 | 5.93 | |
| Palantir Technologies Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | |
| Palo Alto Networks Inc. | — | 0.19 | 1.14 | 17.51 | 5.08 | 2.80 | |
| Salesforce Inc. | 0.15 | 0.17 | 0.20 | 0.19 | 0.07 | 0.09 | |
| ServiceNow Inc. | — | 0.15 | 0.20 | 0.30 | 0.43 | 0.58 | |
| Synopsys Inc. | — | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | |
| Debt to Equity, Sector | |||||||
| Software & Services | — | 0.54 | 0.64 | 0.71 | 0.83 | 0.95 | |
| Debt to Equity, Industry | |||||||
| Information Technology | — | 0.61 | 0.66 | 0.71 | 0.83 | 0.97 | |
Based on: 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), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 2,984 ÷ 9,034 = 0.33
2 Click competitor name to see calculations.
- Total debt
- The total debt exhibited an overall upward trend from 2020 to 2025. Beginning at US$1,262 million in 2020, it increased steadily to US$1,840 million by 2022, followed by a more pronounced rise to approximately US$2,980 million by 2024 and 2025. This suggests a growing reliance on debt financing during this period, with a notable acceleration in debt accumulation from 2022 onwards.
- Stockholders’ equity
- The stockholders’ equity showed a consistent and substantial increase over the analyzed years. Starting at US$2,487 million in 2020, equity rose each year, reaching US$9,034 million by 2025. This indicates a strengthening financial base and increased retained earnings or capital infusion, contributing to enhanced shareholder value and financial stability.
- Debt to equity ratio
- The debt to equity ratio fluctuated within a moderate range but demonstrated a declining trend towards the later years. Initially, it increased slightly from 0.51 in 2020 to 0.55 in 2021, then declined to 0.41 in 2022. After a short rise to 0.53 in 2023, the ratio decreased significantly to 0.37 in 2024 and further to 0.33 in 2025. This trend reflects an improving balance between debt and equity, with equity growing at a faster pace than debt, resulting in reduced leverage and potentially lowered financial risk.
- Overall analysis
- Despite rising total debt, the substantial increase in stockholders' equity and the consequent reduction in the debt to equity ratio suggest a strengthening capital structure. The firm appears to be managing its debt prudently relative to its equity base, which may enhance creditworthiness and financial flexibility. The declining leverage ratio in the latter years indicates a strategic emphasis on equity growth or profitability that outpaces debt accumulation.
Debt to Equity (including Operating Lease Liability)
Workday Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Debt, current | —) | —) | —) | 1,222) | 1,103) | 244) | |
| Debt, noncurrent | 2,984) | 2,980) | 2,976) | 617) | 692) | 1,018) | |
| Total debt | 2,984) | 2,980) | 2,976) | 1,840) | 1,795) | 1,262) | |
| Operating lease liabilities, current | 99) | 89) | 91) | 81) | 93) | 66) | |
| Operating lease liabilities, noncurrent | 279) | 227) | 182) | 182) | 350) | 241) | |
| Total debt (including operating lease liability) | 3,362) | 3,296) | 3,249) | 2,103) | 2,238) | 1,570) | |
| Stockholders’ equity | 9,034) | 8,082) | 5,586) | 4,535) | 3,278) | 2,487) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.37 | 0.41 | 0.58 | 0.46 | 0.68 | 0.63 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | — | 0.15 | 0.12 | 0.15 | 0.18 | 0.21 | |
| Adobe Inc. | — | 0.43 | 0.25 | 0.33 | 0.32 | 0.35 | |
| Cadence Design Systems Inc. | — | 0.56 | 0.24 | 0.34 | 0.18 | 0.20 | |
| CrowdStrike Holdings Inc. | 0.24 | 0.34 | 0.54 | 0.76 | 0.89 | 0.00 | |
| Fair Isaac Corp. | — | — | — | — | — | 2.83 | |
| International Business Machines Corp. | — | 2.14 | 2.66 | 2.46 | 2.92 | 3.23 | |
| Intuit Inc. | — | 0.36 | 0.39 | 0.46 | 0.25 | 0.71 | |
| Microsoft Corp. | — | 0.36 | 0.39 | 0.47 | 0.58 | 0.69 | |
| Oracle Corp. | 5.33 | 10.85 | 88.84 | — | 16.61 | 6.10 | |
| Palantir Technologies Inc. | — | 0.05 | 0.07 | 0.10 | 0.11 | 0.30 | |
| Palo Alto Networks Inc. | — | 0.27 | 1.33 | 19.12 | 5.68 | 3.16 | |
| Salesforce Inc. | 0.20 | 0.23 | 0.25 | 0.25 | 0.15 | 0.18 | |
| ServiceNow Inc. | — | 0.24 | 0.30 | 0.44 | 0.60 | 0.75 | |
| Synopsys Inc. | — | 0.08 | 0.11 | 0.12 | 0.13 | 0.14 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | — | 0.63 | 0.73 | 0.81 | 0.94 | 1.06 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.67 | 0.73 | 0.77 | 0.91 | 1.04 | |
Based on: 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), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 3,362 ÷ 9,034 = 0.37
2 Click competitor name to see calculations.
The financial data over the specified periods reveals several notable trends in the company's capital structure and leverage.
- Total Debt (including operating lease liability)
- The company’s total debt increased consistently from 2020 through 2025. Starting at $1,570 million in 2020, debt rose to $3,362 million by 2025. The most significant increase occurred between 2021 and 2023, where the debt jumped from $2,238 million to $3,249 million, after which the upward trend continued but at a slower pace. This escalation indicates a growing reliance on borrowed funds over the analyzed period.
- Stockholders’ Equity
- Stockholders’ equity demonstrated a strong and steady growth pattern, nearly quadrupling from $2,487 million in 2020 to $9,034 million in 2025. The increases were consistent year-over-year, with the most substantial rise occurring between 2023 and 2024. This upward trend reflects an accumulation of retained earnings and/or new equity injections, strengthening the company’s net worth and financial foundation.
- Debt to Equity Ratio (including operating lease liability)
- The debt-to-equity ratio fluctuated over the period but exhibited an overall declining trend, moving from 0.63 in 2020 down to 0.37 in 2025. The ratio peaked briefly in 2021 at 0.68 before declining sharply in the following years. This decline suggests that despite the increase in total debt, equity has grown at a higher rate, resulting in a more conservative leverage position. The decreasing ratio indicates improved financial stability and lower relative debt risk from the equity perspective.
In summary, the company has increased its total debt levels, but this has been outpaced by a significantly stronger growth in stockholders’ equity, leading to a marked reduction in leverage as measured by the debt-to-equity ratio. The financial position appears to have improved in terms of capital structure, reflecting enhanced equity buffers despite the rising absolute debt amount.
Debt to Capital
Workday Inc., debt to capital calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Debt, current | —) | —) | —) | 1,222) | 1,103) | 244) | |
| Debt, noncurrent | 2,984) | 2,980) | 2,976) | 617) | 692) | 1,018) | |
| Total debt | 2,984) | 2,980) | 2,976) | 1,840) | 1,795) | 1,262) | |
| Stockholders’ equity | 9,034) | 8,082) | 5,586) | 4,535) | 3,278) | 2,487) | |
| Total capital | 12,018) | 11,062) | 8,562) | 6,375) | 5,073) | 3,749) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.25 | 0.27 | 0.35 | 0.29 | 0.35 | 0.34 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Accenture PLC | — | 0.03 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | — | 0.29 | 0.18 | 0.23 | 0.22 | 0.24 | |
| Cadence Design Systems Inc. | — | 0.35 | 0.16 | 0.21 | 0.11 | 0.12 | |
| CrowdStrike Holdings Inc. | 0.18 | 0.24 | 0.34 | 0.42 | 0.46 | 0.00 | |
| Fair Isaac Corp. | — | 1.77 | 1.59 | 1.76 | 1.10 | 0.72 | |
| International Business Machines Corp. | — | 0.67 | 0.72 | 0.70 | 0.73 | 0.75 | |
| Intuit Inc. | — | 0.25 | 0.26 | 0.30 | 0.17 | 0.40 | |
| Microsoft Corp. | — | 0.23 | 0.24 | 0.28 | 0.33 | 0.38 | |
| Oracle Corp. | 0.82 | 0.91 | 0.99 | 1.09 | 0.94 | 0.86 | |
| Palantir Technologies Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.12 | |
| Palo Alto Networks Inc. | — | 0.16 | 0.53 | 0.95 | 0.84 | 0.74 | |
| Salesforce Inc. | 0.13 | 0.15 | 0.16 | 0.16 | 0.06 | 0.08 | |
| ServiceNow Inc. | — | 0.13 | 0.16 | 0.23 | 0.30 | 0.37 | |
| Synopsys Inc. | — | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | |
| Debt to Capital, Sector | |||||||
| Software & Services | — | 0.35 | 0.39 | 0.42 | 0.45 | 0.49 | |
| Debt to Capital, Industry | |||||||
| Information Technology | — | 0.38 | 0.40 | 0.41 | 0.45 | 0.49 | |
Based on: 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), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 2,984 ÷ 12,018 = 0.25
2 Click competitor name to see calculations.
- Total Debt
-
The total debt demonstrated a consistent increase from January 31, 2020, to January 31, 2025. It rose from $1,262 million in 2020 to $2,984 million in 2025. The most significant increase occurred between 2021 and 2023, where the debt jumped from $1,795 million to $2,976 million, showing a notable acceleration in borrowing during this period. After 2023, the total debt stabilized, with only marginal increases observed through 2024 and 2025.
- Total Capital
-
Total capital experienced a strong upward trend across the years reviewed. Beginning at $3,749 million in 2020, total capital grew steadily, reaching $12,018 million by 2025. This denotes substantial capital growth, with a particularly pronounced increase observed after 2022, indicating aggressive capital expansion or accumulation during the latter years. The growth rate of total capital outpaced that of total debt, which is critical for assessing leverage dynamics.
- Debt to Capital Ratio
-
The debt to capital ratio fluctuated within a relatively narrow range, starting at 0.34 in 2020 and declining to 0.25 by 2025. Notably, there was a decrease in the ratio in 2022 to 0.29, followed by a rise to 0.35 in 2023. Subsequently, it resumed a downward trend through 2025. This pattern suggests that despite the increase in total debt, the company's capital base grew at a faster pace overall, leading to lower leverage ratios in the later years. The reduction in the ratio towards 2025 implies an improving balance sheet structure with less reliance on debt financing relative to capital.
Debt to Capital (including Operating Lease Liability)
Workday Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Debt, current | —) | —) | —) | 1,222) | 1,103) | 244) | |
| Debt, noncurrent | 2,984) | 2,980) | 2,976) | 617) | 692) | 1,018) | |
| Total debt | 2,984) | 2,980) | 2,976) | 1,840) | 1,795) | 1,262) | |
| Operating lease liabilities, current | 99) | 89) | 91) | 81) | 93) | 66) | |
| Operating lease liabilities, noncurrent | 279) | 227) | 182) | 182) | 350) | 241) | |
| Total debt (including operating lease liability) | 3,362) | 3,296) | 3,249) | 2,103) | 2,238) | 1,570) | |
| Stockholders’ equity | 9,034) | 8,082) | 5,586) | 4,535) | 3,278) | 2,487) | |
| Total capital (including operating lease liability) | 12,396) | 11,378) | 8,835) | 6,638) | 5,516) | 4,056) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.27 | 0.29 | 0.37 | 0.32 | 0.41 | 0.39 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | — | 0.13 | 0.11 | 0.13 | 0.15 | 0.17 | |
| Adobe Inc. | — | 0.30 | 0.20 | 0.25 | 0.24 | 0.26 | |
| Cadence Design Systems Inc. | — | 0.36 | 0.19 | 0.25 | 0.15 | 0.17 | |
| CrowdStrike Holdings Inc. | 0.19 | 0.26 | 0.35 | 0.43 | 0.47 | 0.00 | |
| Fair Isaac Corp. | — | 1.75 | 1.57 | 1.72 | 1.09 | 0.74 | |
| International Business Machines Corp. | — | 0.68 | 0.73 | 0.71 | 0.74 | 0.76 | |
| Intuit Inc. | — | 0.26 | 0.28 | 0.31 | 0.20 | 0.42 | |
| Microsoft Corp. | — | 0.27 | 0.28 | 0.32 | 0.37 | 0.41 | |
| Oracle Corp. | 0.84 | 0.92 | 0.99 | 1.08 | 0.94 | 0.86 | |
| Palantir Technologies Inc. | — | 0.05 | 0.06 | 0.09 | 0.10 | 0.23 | |
| Palo Alto Networks Inc. | — | 0.21 | 0.57 | 0.95 | 0.85 | 0.76 | |
| Salesforce Inc. | 0.16 | 0.19 | 0.20 | 0.20 | 0.13 | 0.16 | |
| ServiceNow Inc. | — | 0.19 | 0.23 | 0.31 | 0.37 | 0.43 | |
| Synopsys Inc. | — | 0.07 | 0.10 | 0.11 | 0.11 | 0.12 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | — | 0.39 | 0.42 | 0.45 | 0.48 | 0.51 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.40 | 0.42 | 0.44 | 0.48 | 0.51 | |
Based on: 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), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 3,362 ÷ 12,396 = 0.27
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt exhibited a fluctuating yet generally upward trajectory over the observed periods. Beginning at 1,570 million US dollars in early 2020, the debt increased significantly to 2,238 million by early 2021. A slight decrease occurred in early 2022, with debt falling to 2,103 million, followed by a sharp rise to 3,249 million in early 2023. This level remained relatively stable but continued to grow slightly thereafter, reaching 3,362 million by early 2025. The volatility in debt levels may indicate periodic financing activities or refinancing events.
- Total Capital (including operating lease liability)
- Total capital showed a consistent and strong growth pattern throughout the entire period under review. Starting at 4,056 million US dollars in early 2020, it increased steadily every year, reaching 5,516 million in early 2021, then rising to 6,638 million in early 2022. The upward trend accelerated thereafter, with total capital reaching 8,835 million in early 2023, followed by 11,378 million in early 2024, and culminating at 12,396 million in early 2025. This continuous increase signals solid expansion or capitalization efforts.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio displayed a declining trend overall, indicating a reduction in leverage over time relative to the company’s increased capital base. Initially, the ratio was 0.39 in early 2020, rising slightly to 0.41 in early 2021, which suggests a higher proportion of debt in the capital structure at that point. Subsequently, the ratio decreased markedly to 0.32 in early 2022, rebounded somewhat to 0.37 in early 2023, and then steadily declined to 0.29 in early 2024 and further to 0.27 in early 2025. This decline points toward a strategic reduction in debt relative to total capital or faster growth in equity/capital compared to debt.
Debt to Assets
Workday Inc., debt to assets calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Debt, current | —) | —) | —) | 1,222) | 1,103) | 244) | |
| Debt, noncurrent | 2,984) | 2,980) | 2,976) | 617) | 692) | 1,018) | |
| Total debt | 2,984) | 2,980) | 2,976) | 1,840) | 1,795) | 1,262) | |
| Total assets | 17,977) | 16,452) | 13,486) | 10,499) | 8,718) | 6,816) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.17 | 0.18 | 0.22 | 0.18 | 0.21 | 0.19 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Accenture PLC | — | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | — | 0.19 | 0.12 | 0.15 | 0.15 | 0.17 | |
| Cadence Design Systems Inc. | — | 0.28 | 0.11 | 0.15 | 0.08 | 0.09 | |
| CrowdStrike Holdings Inc. | 0.09 | 0.11 | 0.15 | 0.20 | 0.27 | 0.00 | |
| Fair Isaac Corp. | — | 1.29 | 1.18 | 1.29 | 0.80 | 0.52 | |
| International Business Machines Corp. | — | 0.40 | 0.42 | 0.40 | 0.39 | 0.39 | |
| Intuit Inc. | — | 0.19 | 0.22 | 0.25 | 0.13 | 0.31 | |
| Microsoft Corp. | — | 0.15 | 0.16 | 0.18 | 0.21 | 0.24 | |
| Oracle Corp. | 0.57 | 0.62 | 0.67 | 0.69 | 0.64 | 0.62 | |
| Palantir Technologies Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | |
| Palo Alto Networks Inc. | — | 0.05 | 0.14 | 0.30 | 0.31 | 0.34 | |
| Salesforce Inc. | 0.09 | 0.10 | 0.12 | 0.12 | 0.04 | 0.06 | |
| ServiceNow Inc. | — | 0.07 | 0.09 | 0.11 | 0.15 | 0.19 | |
| Synopsys Inc. | — | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 | |
| Debt to Assets, Sector | |||||||
| Software & Services | — | 0.23 | 0.25 | 0.26 | 0.28 | 0.30 | |
| Debt to Assets, Industry | |||||||
| Information Technology | — | 0.25 | 0.26 | 0.26 | 0.29 | 0.31 | |
Based on: 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), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 2,984 ÷ 17,977 = 0.17
2 Click competitor name to see calculations.
- Total Debt
- The total debt has shown an overall increasing trend from 2020 to 2025. Starting at 1,262 million USD in 2020, it rose to 1,795 million USD in 2021, and continued to increase to 1,840 million USD in 2022. A significant jump occurred in 2023, with total debt reaching 2,976 million USD, followed by a smaller increase to 2,980 million USD in 2024 and 2,984 million USD in 2025. The sharp rise in 2023 indicates a major debt acquisition or financing event during that year.
- Total Assets
- Total assets demonstrate a strong and consistent upward trajectory over the entire period. The asset base expanded from 6,816 million USD in 2020 to 8,718 million USD in 2021, further increasing to 10,499 million USD in 2022. The growth accelerated between 2022 and 2023, with assets rising to 13,486 million USD, followed by sizable increases to 16,452 million USD in 2024 and 17,977 million USD in 2025. This steady growth in assets reflects continuous investment and expansion efforts.
- Debt to Assets Ratio
- The debt to assets ratio has fluctuated moderately throughout the period, indicating varying leverage levels relative to the asset base. It started at 0.19 in 2020, increased to 0.21 in 2021, then decreased to 0.18 in 2022. It rose again to 0.22 in 2023, coinciding with the substantial increase in total debt that year. Subsequently, the ratio declined to 0.18 in 2024 and further to 0.17 in 2025. The downward trend in the later years suggests an improved asset coverage relative to debt and a moderate reduction in financial leverage.
Debt to Assets (including Operating Lease Liability)
Workday Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Debt, current | —) | —) | —) | 1,222) | 1,103) | 244) | |
| Debt, noncurrent | 2,984) | 2,980) | 2,976) | 617) | 692) | 1,018) | |
| Total debt | 2,984) | 2,980) | 2,976) | 1,840) | 1,795) | 1,262) | |
| Operating lease liabilities, current | 99) | 89) | 91) | 81) | 93) | 66) | |
| Operating lease liabilities, noncurrent | 279) | 227) | 182) | 182) | 350) | 241) | |
| Total debt (including operating lease liability) | 3,362) | 3,296) | 3,249) | 2,103) | 2,238) | 1,570) | |
| Total assets | 17,977) | 16,452) | 13,486) | 10,499) | 8,718) | 6,816) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.19 | 0.20 | 0.24 | 0.20 | 0.26 | 0.23 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | — | 0.07 | 0.06 | 0.07 | 0.08 | 0.09 | |
| Adobe Inc. | — | 0.20 | 0.14 | 0.17 | 0.17 | 0.19 | |
| Cadence Design Systems Inc. | — | 0.29 | 0.14 | 0.18 | 0.11 | 0.13 | |
| CrowdStrike Holdings Inc. | 0.09 | 0.12 | 0.16 | 0.21 | 0.29 | 0.00 | |
| Fair Isaac Corp. | — | 1.31 | 1.21 | 1.33 | 0.85 | 0.58 | |
| International Business Machines Corp. | — | 0.43 | 0.44 | 0.42 | 0.42 | 0.43 | |
| Intuit Inc. | — | 0.20 | 0.24 | 0.27 | 0.16 | 0.33 | |
| Microsoft Corp. | — | 0.19 | 0.19 | 0.21 | 0.25 | 0.27 | |
| Oracle Corp. | 0.65 | 0.67 | 0.71 | 0.73 | 0.66 | 0.64 | |
| Palantir Technologies Inc. | — | 0.04 | 0.05 | 0.07 | 0.08 | 0.17 | |
| Palo Alto Networks Inc. | — | 0.07 | 0.16 | 0.33 | 0.35 | 0.38 | |
| Salesforce Inc. | 0.12 | 0.14 | 0.15 | 0.15 | 0.10 | 0.11 | |
| ServiceNow Inc. | — | 0.11 | 0.13 | 0.17 | 0.21 | 0.24 | |
| Synopsys Inc. | — | 0.05 | 0.07 | 0.07 | 0.08 | 0.08 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | — | 0.27 | 0.29 | 0.30 | 0.32 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.27 | 0.28 | 0.29 | 0.31 | 0.33 | |
Based on: 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), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 3,362 ÷ 17,977 = 0.19
2 Click competitor name to see calculations.
The financial data reveals notable trends in Workday Inc.'s leverage and asset base over the specified periods.
- Total Debt (Including Operating Lease Liability)
- The total debt has exhibited an upward trend overall, increasing from $1,570 million in 2020 to $3,362 million in 2025. A peak is observed in 2023 at $3,249 million, followed by a slight increase to $3,296 million in 2024 and a marginal rise continuing into 2025. This trajectory suggests a rise in the company's leverage, albeit with periods of relative stabilization.
- Total Assets
- Total assets have consistently grown from $6,816 million in 2020 to $17,977 million in 2025. The asset base nearly tripled over the six-year period, reflecting substantial investments and possible expansion. Growth between each consecutive year remains steady, with no periods of contraction or stagnation, indicating a strong and persistent increase in asset accumulation.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio has fluctuated within a relatively narrow range. Starting at 0.23 in 2020, it increased slightly to 0.26 in 2021 before declining to 0.20 in 2022. The ratio rose again to 0.24 in 2023, then decreased consistently to 0.20 in 2024 and further to 0.19 in 2025. Despite the increase in absolute debt levels, the decreasing ratio in the latter years suggests that asset growth outpaced debt accumulation.
In summary, while total debt has increased significantly, total assets have grown at a faster pace, resulting in a generally favorable trend in the debt to assets ratio over the longer term. This indicates an improvement in the capital structure's balance, with the company enhancing its asset base relative to its liabilities.
Financial Leverage
Workday Inc., financial leverage calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 17,977) | 16,452) | 13,486) | 10,499) | 8,718) | 6,816) | |
| Stockholders’ equity | 9,034) | 8,082) | 5,586) | 4,535) | 3,278) | 2,487) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 1.99 | 2.04 | 2.41 | 2.31 | 2.66 | 2.74 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Accenture PLC | — | 1.98 | 1.99 | 2.14 | 2.21 | 2.18 | |
| Adobe Inc. | — | 2.14 | 1.80 | 1.93 | 1.84 | 1.83 | |
| Cadence Design Systems Inc. | — | 1.92 | 1.67 | 1.87 | 1.60 | 1.58 | |
| CrowdStrike Holdings Inc. | 2.65 | 2.88 | 3.43 | 3.53 | 3.14 | 1.89 | |
| Fair Isaac Corp. | — | — | — | — | — | 4.85 | |
| International Business Machines Corp. | — | 5.02 | 6.00 | 5.80 | 6.98 | 7.57 | |
| Intuit Inc. | — | 1.74 | 1.61 | 1.69 | 1.57 | 2.14 | |
| Microsoft Corp. | — | 1.91 | 2.00 | 2.19 | 2.35 | 2.55 | |
| Oracle Corp. | 8.23 | 16.20 | 125.24 | — | 25.03 | 9.56 | |
| Palantir Technologies Inc. | — | 1.27 | 1.30 | 1.35 | 1.42 | 1.77 | |
| Palo Alto Networks Inc. | — | 3.87 | 8.29 | 58.35 | 16.14 | 8.23 | |
| Salesforce Inc. | 1.68 | 1.67 | 1.69 | 1.64 | 1.60 | 1.63 | |
| ServiceNow Inc. | — | 2.12 | 2.28 | 2.64 | 2.92 | 3.07 | |
| Synopsys Inc. | — | 1.45 | 1.68 | 1.71 | 1.65 | 1.64 | |
| Financial Leverage, Sector | |||||||
| Software & Services | — | 2.36 | 2.55 | 2.73 | 2.96 | 3.14 | |
| Financial Leverage, Industry | |||||||
| Information Technology | — | 2.46 | 2.56 | 2.69 | 2.90 | 3.12 | |
Based on: 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), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 17,977 ÷ 9,034 = 1.99
2 Click competitor name to see calculations.
- Total Assets
-
The total assets have exhibited a consistent upward trajectory over the observed period. Beginning at US$ 6,816 million in January 2020, the assets increased steadily each year, reaching US$ 17,977 million by January 2025. This growth reflects an overall expansion in the company's asset base, suggesting investment in resources or acquisitions supporting business growth.
- Stockholders’ Equity
-
Stockholders’ equity has also shown a significant increase throughout the timeframe. Starting at US$ 2,487 million in January 2020, equity amounts rose progressively, reaching US$ 9,034 million in January 2025. The equity growth corresponds with the increase in total assets but is proportionally higher, indicating possibly retained earnings accumulation or equity financing contributing to strengthening the company’s net worth.
- Financial Leverage
-
The financial leverage ratio demonstrates a declining trend from 2.74 in January 2020 to 1.99 in January 2025. This downward movement indicates a reduction in the relative amount of debt employed versus equity, reflecting an improving capital structure. The decrease points to reduced financial risk and suggests enhanced solvency as equity has grown faster than total assets or debt levels.
Interest Coverage
Workday Inc., interest coverage calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | 526) | 1,381) | (367) | 29) | (282) | (481) | |
| Add: Income tax expense | 112) | (1,025) | 107) | (13) | 7) | (2) | |
| Add: Interest expense | 114) | 114) | 102) | 17) | 69) | 59) | |
| Earnings before interest and tax (EBIT) | 752) | 470) | (158) | 33) | (206) | (424) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 6.60 | 4.12 | -1.54 | 1.97 | -3.00 | -7.22 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Accenture PLC | — | 165.48 | 193.31 | 195.34 | 131.46 | 205.84 | |
| Adobe Inc. | — | 42.01 | 61.17 | 54.64 | 51.49 | 37.00 | |
| Cadence Design Systems Inc. | — | 19.37 | 36.43 | 46.58 | 46.26 | 31.50 | |
| CrowdStrike Holdings Inc. | 3.07 | 5.77 | -5.31 | -5.34 | -55.36 | -315.25 | |
| Fair Isaac Corp. | — | 7.08 | 6.79 | 7.83 | 12.80 | 7.09 | |
| International Business Machines Corp. | — | 4.40 | 6.42 | 1.97 | 5.20 | 4.62 | |
| Intuit Inc. | — | 15.67 | 13.05 | 32.38 | 89.14 | 158.00 | |
| Microsoft Corp. | — | 37.72 | 46.38 | 41.58 | 31.31 | 21.47 | |
| Oracle Corp. | 5.01 | 4.39 | 3.65 | 3.84 | 6.28 | 7.13 | |
| Palantir Technologies Inc. | — | — | 69.33 | -87.97 | -133.20 | -82.39 | |
| Palo Alto Networks Inc. | — | 120.07 | 21.82 | -6.56 | -1.85 | -1.61 | |
| Salesforce Inc. | 28.35 | 18.49 | 3.20 | 7.93 | 21.49 | 6.43 | |
| ServiceNow Inc. | — | 76.57 | 43.00 | 15.78 | 9.89 | 5.56 | |
| Synopsys Inc. | — | 44.06 | 1,106.08 | 657.96 | 240.38 | 125.16 | |
| Interest Coverage, Sector | |||||||
| Software & Services | — | 17.98 | 17.22 | 18.09 | 17.35 | 13.97 | |
| Interest Coverage, Industry | |||||||
| Information Technology | — | 19.55 | 17.69 | 22.65 | 19.92 | 14.14 | |
Based on: 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), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 752 ÷ 114 = 6.60
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT figures demonstrate significant volatility over the observed periods. Initially, there is a substantial negative value of -424 million USD in 2020, which improves to -206 million USD in 2021. By 2022, the company records a positive EBIT of 33 million USD, indicating a turnaround. However, this improvement is short-lived as EBIT declines again to -158 million USD in 2023. Following this dip, there is a marked recovery in the final two periods, reaching 470 million USD in 2024 and further increasing to 752 million USD in 2025. Overall, the trend indicates an initial recovery phase, a temporary regression, and then substantial growth in operating profitability in recent years.
- Interest Expense
- Interest expense fluctuates moderately throughout the periods. Beginning at 59 million USD in 2020, it rises slightly to 69 million USD by 2021, then decreases to 17 million USD in 2022. After this decrease, interest expense increases sharply to 102 million USD in 2023, continuing slightly upward to 114 million USD in 2024, and stabilizing at that level in 2025. This pattern suggests variability potentially related to changes in borrowing or interest rates, with a trend toward increased interest obligations in the later years.
- Interest Coverage Ratio
- The interest coverage ratio, indicating the company’s ability to meet interest payments with its operating earnings, mirrors the fluctuations in EBIT and interest expense. It remains deeply negative at -7.22 and -3.00 in 2020 and 2021 respectively, reflecting operating losses relative to interest costs. The ratio improves to a positive 1.97 in 2022, signifying the company’s EBIT surpassing interest expenses. This improvement diminishes in 2023, with a negative coverage ratio of -1.54, indicating an inability to cover interest from EBIT during that period. Subsequently, there is a notable strengthening with ratios climbing to 4.12 in 2024 and further to 6.60 in 2025, signaling considerable improvement in coverage capacity driven by stronger EBIT relative to steady interest expenses.
Fixed Charge Coverage
Workday Inc., fixed charge coverage calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | 526) | 1,381) | (367) | 29) | (282) | (481) | |
| Add: Income tax expense | 112) | (1,025) | 107) | (13) | 7) | (2) | |
| Add: Interest expense | 114) | 114) | 102) | 17) | 69) | 59) | |
| Earnings before interest and tax (EBIT) | 752) | 470) | (158) | 33) | (206) | (424) | |
| Add: Operating lease cost | 123) | 109) | 99) | 93) | 94) | 85) | |
| Earnings before fixed charges and tax | 875) | 579) | (59) | 126) | (112) | (339) | |
| Interest expense | 114) | 114) | 102) | 17) | 69) | 59) | |
| Operating lease cost | 123) | 109) | 99) | 93) | 94) | 85) | |
| Fixed charges | 237) | 223) | 201) | 110) | 163) | 144) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 3.69 | 2.60 | -0.29 | 1.15 | -0.69 | -2.35 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Accenture PLC | — | 13.46 | 10.98 | 12.25 | 10.41 | 9.66 | |
| Adobe Inc. | — | 26.20 | 30.56 | 26.79 | 25.59 | 18.77 | |
| Cadence Design Systems Inc. | — | 11.13 | 14.79 | 15.50 | 13.77 | 11.46 | |
| CrowdStrike Holdings Inc. | 2.25 | 3.98 | -3.39 | -3.39 | -6.40 | -12.01 | |
| Fair Isaac Corp. | — | 6.35 | 5.94 | 6.39 | 8.93 | 4.91 | |
| International Business Machines Corp. | — | 3.13 | 4.32 | 1.52 | 3.13 | 2.62 | |
| Intuit Inc. | — | 11.14 | 9.03 | 14.67 | 25.58 | 27.48 | |
| Microsoft Corp. | — | 17.61 | 19.44 | 19.50 | 16.90 | 12.44 | |
| Oracle Corp. | 3.71 | 3.55 | 3.12 | 3.22 | 5.17 | 5.68 | |
| Palantir Technologies Inc. | — | 9.48 | 4.62 | -5.06 | -7.89 | -16.41 | |
| Palo Alto Networks Inc. | — | 12.78 | 7.20 | -1.18 | -1.09 | -0.52 | |
| Salesforce Inc. | 8.78 | 4.74 | 1.51 | 2.18 | 2.92 | 1.68 | |
| ServiceNow Inc. | — | 12.36 | 7.59 | 3.87 | 2.95 | 2.29 | |
| Synopsys Inc. | — | 12.88 | 14.38 | 12.91 | 9.29 | 7.46 | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | — | 9.99 | 9.48 | 9.44 | 9.23 | 7.43 | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | — | 12.44 | 11.34 | 13.44 | 12.21 | 9.04 | |
Based on: 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), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 875 ÷ 237 = 3.69
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax exhibited considerable volatility across the periods. Initially, there was a significant negative value of -339 million USD in early 2020, which improved consistently to positive territory by early 2022, reaching 126 million USD. However, a setback occurred in 2023 when earnings dipped back into negative at -59 million USD. Subsequent years showed a strong recovery with substantial growth to 579 million USD in 2024 and 875 million USD in 2025, indicating an improving operational profitability trend in the latter years.
- Fixed charges
- Fixed charges generally increased over the periods under review. Starting at 144 million USD in 2020, these charges rose moderately to 163 million USD in 2021, then decreased to 110 million USD in 2022. Following this fluctuation, fixed charges increased again to 201 million USD in 2023, with steady increments continuing to 223 million USD and 237 million USD in 2024 and 2025, respectively. The pattern suggests an increasing burden of fixed costs in recent years.
- Fixed charge coverage ratio
- The fixed charge coverage ratio mirrored the earnings pattern and showed notable fluctuations. It remained negative and below 1 from 2020 through 2021 (-2.35 and -0.69), turned positive and improved to 1.15 in 2022, dropped again to a negative value (-0.29) in 2023, and then increased sharply to 2.6 in 2024 and further to 3.69 in 2025. This indicates a strengthening ability to cover fixed charges with earnings, particularly in the last two periods, reflecting enhanced financial stability and operational efficiency.