Workday Inc. (NASDAQ:WDAY)

Debt to Equity Ratio

The debt to equity ratio shows a general decreasing trend over the periods analyzed, starting at 0.68 and declining to around 0.33 by the latest periods. There is a noticeable spike around April to July 2022, reaching a high of 0.86 before returning to the downward trajectory. This indicates a gradual reduction in reliance on debt relative to shareholders' equity, suggesting strengthening equity base or debt repayment over time, interrupted briefly by increased leverage mid-2022.

Debt to Equity Ratio (Including Operating Lease Liability)

This ratio mirrors the trend of the standard debt to equity ratio but consistently registers higher values, indicating that operating lease liabilities add materially to the company's financial obligations. The values decline from 0.81 to approximately 0.38-0.41 towards the end of the timeline. The mid-2022 increase is also evident here, reinforcing the temporary increase in overall debt-like obligations during that period.

Debt to Capital Ratio

The debt to capital ratio demonstrates a steady decrease from 0.41 to 0.25 over the analyzed quarters, reflecting a reduction in total debt as a proportion of capital employed. This trend is indicative of a strengthening capital structure with less reliance on debt capital, contributing to potentially lower financial risk.

Debt to Capital Ratio (Including Operating Lease Liability)

Including operating lease liabilities, this ratio follows a similar decreasing pattern from 0.45 to approximately 0.28-0.29 in later periods. The ratio experiences a modest increase around mid-2024, hinting at a slight rise in overall obligations, but the general trend confirms ongoing deleveraging when accounting for lease commitments.

Debt to Assets Ratio

Debt relative to total assets gradually decreased from 0.25 to about 0.17 across the timespan. This suggests an improvement in asset funding quality, with the company relying less on debt to finance its assets. A peak in this ratio occurs near mid-2022 but remains followed by a decline afterward.

Debt to Assets Ratio (Including Operating Lease Liability)

This ratio, which factors in operating lease liabilities, runs parallel to the debt to assets ratio but is slightly higher throughout, moving from 0.29 down to the 0.20-0.21 range towards the end. The observable peak in mid-2022 aligns with other debt measures, showing a consistent pattern of increased leverage during that time before resuming a downward course.

Financial Leverage

Financial leverage has decreased from a level of 2.78 to near 1.96 by the final periods reviewed, indicating a progressive reduction in the company's use of debt financing relative to equity. The data presents a temporary spike in early 2021 and mid-2022, but overall, the trend confirms diminishing leverage and potentially reduced financial risk.

The analysis of the financial data reveals several significant trends in the company's capital structure over the reported periods. The total debt shows relative stability in the earlier quarters, ranging from approximately $1.77 billion to $1.86 billion from April 2020 through January 2022. However, a notable increase occurs during April and July 2022, peaking around $4.12 billion, followed by a sharp decline to a more stable level near $3 billion from October 2022 onward. After this adjustment, the total debt remains largely consistent through to July 2025, indicating a controlled debt level in recent periods.

Stockholders’ equity demonstrates a consistent and steady increase throughout the entire timeframe. Beginning at $2.60 billion in April 2020, equity grows incrementally each quarter, reaching over $9 billion by July 2025. This persistent rise suggests ongoing profitability, successful capital retention, or equity financing activities contributing positively to the company’s net worth.

The debt to equity ratio exhibits an overall decreasing trend, reflecting an improving balance between borrowed funds and shareholder investment. Initially starting at 0.68 in April 2020, the ratio falls steadily to around 0.37 by early 2022. An exception appears in the mid-2022 period when the ratio temporarily spikes to values exceeding 0.8, coinciding with the substantial rise in total debt. After this surge, the ratio continues to decline, achieving approximately 0.33 by mid-2025. This suggests a reduction in financial leverage, possibly resulting from debt repayment or stronger equity growth relative to debt.

Total Debt

Stable in early periods with a spike in mid-2022, followed by a return to lower, stable levels thereafter.

Stockholders’ Equity

Steady and significant growth over the entire period, indicating increasing company net worth.

Debt to Equity Ratio

General downward trend, with a mid-2022 peak corresponding to the debt spike, followed by a recovery to lower leverage levels over time.

Collectively, these patterns suggest the company managed a period of increased borrowing mid-2022 but subsequently strengthened its equity base and reduced its relative debt burden. The trajectory points to a favorable evolution towards a more conservative capital structure with enhanced financial stability.

The financial data indicate notable trends in debt, equity, and leverage ratios over the observed periods. There is a dynamic interplay between the levels of total debt, stockholders’ equity, and the corresponding debt-to-equity ratio that reveals changes in the company's financial structure.

Total Debt (Including Operating Lease Liability)

The total debt value fluctuates across the quarters. Initially, the debt levels range around the 2100s million USD, with slight increases and decreases through early 2022. A sharp rise is observed in April 2022, reaching above 4300 million USD, followed by a subsequent decline. From early 2023 onwards, debt appears relatively stable around the 3200-3300 million USD range but begins to increase again toward the last periods, ending near 3776 million USD by mid-2025. This indicates intermittent financing activities or adjustments in leasing obligations during the timeline.

Stockholders’ Equity

The stockholders’ equity displays a consistent upward trend throughout the entire period. Starting from just above 2600 million USD in April 2020, equity grows steadily each quarter, reflecting accumulation of retained earnings, possible capital increases, or asset revaluations. By April 2025, equity reaches over 9100 million USD, more than tripling the initial value. This growth suggests solid accumulation of net assets and a strengthening of the company’s net worth over time.

Debt to Equity Ratio (Including Operating Lease Liability)

The debt-to-equity ratio generally trends downward from a high of 0.81 in April 2020 to a low near 0.37 in early 2025. This decline underlines a reduction in leverage relative to equity. Despite the spike in debt noted in 2022, the ratio quickly reverted to a decreasing path, likely due to stronger equity growth and effective management of debt levels. Towards mid-2025, a slight uptick in the ratio is noted, moving from 0.37 to approximately 0.41, indicating a marginal increase in leverage or comparatively slower equity growth in the very latest quarter.

Overall, the trends highlight a significant strengthening of the company's balance sheet, with growing equity capital and controlled leverage. The temporary spike in debt in 2022 warrants further examination but does not appear to disrupt the overall improving financial position. The gradual improvement in the debt-to-equity ratio reflects prudent financial management and a favorable shift toward less reliance on debt financing relative to shareholders' investment.

Total Debt

The total debt level experienced an initial gradual increase from around 1,775 million USD in April 2020 to approximately 1,865 million USD in April 2021. Following this period, the debt amount remained relatively stable, fluctuating slightly just below 1,850 million USD until January 2022. At that point, a significant increase is observed, with total debt jumping sharply to over 4,100 million USD. After this spike, total debt decreases steadily, reaching approximately 2,985 million USD by July 2025, where it then stabilizes.

Total Capital

Total capital showed consistent growth through the initial periods, starting at 4,377 million USD in April 2020 and increasing steadily to reach about 6,375 million USD by January 2022. Similar to total debt, there is a notable surge in capital around this time, with a jump to roughly 8,900 million USD in April 2022, followed by some volatility in subsequent quarters but maintaining an overall upward trend. By July 2025, total capital reaches approximately 12,157 million USD, reflecting significant expansion over the observed timeframe.

Debt to Capital Ratio

The debt-to-capital ratio exhibits a gradual declining trend from 0.41 in April 2020 to a low near 0.29 in January 2022, indicating a reduction in leverage relative to capital during this period. However, this trend reverses sharply coinciding with the surge in both debt and capital around early 2022, with the ratio jumping to the mid-0.40 range by April and July 2022. Subsequent quarters demonstrate a steady and consistent decline in the debt-to-capital ratio, ultimately reaching around 0.25 by mid-2025, suggesting a strategic reduction in reliance on debt financing relative to capital growth.

Summary of Trends

The data reveals a pattern of gradual growth in both total debt and total capital up until early 2022, followed by a pronounced and temporary spike in total debt and capital. This spike is accompanied by a rise in the debt-to-capital ratio, indicating a transient increase in leverage. After this period, the company effectively reduced its debt level and continued to grow capital, resulting in a declining debt-to-capital ratio and an overall strengthening of the capital structure. The steady decrease in leverage over the most recent periods points to an improving financial stability and potentially a more conservative financing approach.

The financial data reflects quarterly metrics related to debt and capital structure over a period spanning from April 2020 to July 2025. Several notable trends and fluctuations can be identified from the figures.

Total Debt (Including Operating Lease Liability)

The total debt showed relative stability from April 2020 until January 2022, remaining generally within the range of approximately 2,100 to 2,240 million USD. A marked increase occurred in April 2022, with debt jumping to 4,384 million USD and remaining elevated thereafter, fluctuating between roughly 3,200 and 3,700 million USD through July 2025. This suggests a significant acquisition of liabilities or financing activity around early 2022, followed by a period of relatively stable debt levels at the higher base.

Total Capital (Including Operating Lease Liability)

Total capital exhibited a consistent upward trajectory throughout the period. Beginning near 4,700 million USD in April 2020, it increased steadily, with a pronounced rise occurring simultaneously with the debt surge around April 2022, reaching above 9,000 million USD. Post that period, capital continued to grow, surpassing 12,000 million USD by mid-2025. This continual growth in capital indicates sustained investment or expansion activities and an overall increase in the company's financial base.

Debt to Capital Ratio (Including Operating Lease Liability)

The ratio decreased steadily from 0.45 in April 2020 to about 0.29 by January 2022, implying effective management of leverage in relation to capital growth. A temporary spike occurred in April 2022, coinciding with the sharp increase in absolute debt, where the ratio rose to approximately 0.48, indicating a higher proportion of debt relative to capital at that point. Subsequently, the leverage ratio resumed its downward trend, falling to a range close to 0.27-0.29 by mid-2025. This pattern suggests an initially cautious capital structure that temporarily shifted towards higher leverage before stabilizing and improving again as capital continued to grow.

In summary, the period shows two distinct phases: an initial period of relatively stable debt and gradual capital growth with declining leverage, followed by an abrupt increase in debt and capital in early 2022 accompanied by a transient increase in leverage, and finally a phase of stabilized debt, steady capital appreciation, and improving leverage ratios. These shifts may reflect strategic financing decisions, possible acquisitions, or other investments impacting the company’s capital structure.

Total Debt

The total debt showed a generally stable trend between April 2020 and January 2022, fluctuating slightly around the range of 1775 to 1865 million USD. Beginning in April 2022, there was a significant increase in total debt, peaking notably at 4123 million USD in July 2022. Following this peak, total debt decreased sharply to approximately 2975 million USD by October 2022 and then remained relatively stable around the 2975 to 2985 million USD range through to July 2025.

Total Assets

Total assets exhibited a steady upward trajectory throughout the entire period, increasing from 7228 million USD in April 2020 to a peak of 17977 million USD by April 2025. This growth was consistent with some fluctuations, including noticeable increases around January 2022 and again towards the end of the dataset, indicating ongoing asset accumulation over time.

Debt to Assets Ratio

The debt to assets ratio demonstrated a declining trend from 0.25 in April 2020 to a low of 0.18 by January 2022, despite the rise in total debt observed earlier in the timeline. A sharp increase in the ratio occurred in April and July 2022, reaching peaks around 0.32 and 0.31 respectively, reflecting the spike in total debt during this period. After this anomaly, the ratio decreased again, returning to a more stable and low range between 0.17 and 0.22 for the remainder of the periods. This pattern suggests an improvement in leverage position post-July 2022, largely attributable to growth in total assets alongside managed debt levels.

The analysis of the quarterly financial data reveals several notable trends in the company's capital structure and asset base over the observed periods.

Total Debt (Including Operating Lease Liability)

The total debt levels remained relatively stable from April 2020 through January 2022, fluctuating marginally around the 2,100 million to 2,200 million USD range. Starting April 2022, there was a significant increase, peaking around April 2022 and July 2022, followed by a decline in late 2022. Post-Q1 2023, debt levels stabilized again, with slight increases observed toward early 2025, ending near 3,776 million USD in July 2025. This pattern suggests a period of increased leverage beginning in mid-2022, followed by stabilization and modest growth in debt obligations in recent periods.

Total Assets

Total assets exhibited a general upward trend throughout the entire period. Asset values rose steadily from 7,228 million USD in April 2020 to a peak of 18,000 million USD range by early 2025, with some fluctuations around late 2022. Notable jumps in asset value are observed around early 2022 and continuing into 2023 and 2024, indicating substantial asset accumulation or revaluation. This consistent growth suggests ongoing investment or acquisition activities enhancing the company's asset base.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio declined steadily from 0.29 in April 2020 to about 0.20 by January 2022, reflecting a favorable reduction in leverage relative to asset growth. Then, between April 2022 and July 2022, the ratio increased sharply to approximately 0.34, implying that debt grew faster than assets during this interval. Subsequently, the ratio returned to a declining and stabilized pattern around 0.20 to 0.21 from January 2023 through mid-2025, indicating improved financial balance with controlled leverage as assets continued to grow proportionally more than debt.

In summary, the company experienced a period of increased leverage in early-mid 2022 that temporarily raised the debt to assets ratio. However, this was followed by rebalancing efforts that reduced leverage to more moderate levels. The sustained growth in total assets over the entire timeframe suggests the company’s focus on expanding its asset base, potentially through strategic investments or acquisitions, while maintaining prudent management of its debt levels relative to assets in the more recent periods.

The analysis of the quarterly financial data reveals several notable trends in the company’s asset base, equity position, and financial leverage over the periods presented.

Total Assets

The total assets show a generally increasing trend over the entire period. Starting from US$7,228 million in April 2020, total assets grew steadily, reaching a peak of US$17,977 million by January 2025. Although there is a slight fluctuation around late 2022 where total assets decreased from US$13,250 million in July 2022 to US$12,390 million in October 2022, the overall trajectory remains upward, indicating consistent expansion in the company’s resource base.

Stockholders’ Equity

Stockholders’ equity also follows an increasing pattern, rising from US$2,602 million in April 2020 to US$9,172 million by July 2025. The equity growth is relatively steady with no significant declines, reflecting ongoing accumulation of retained earnings and possibly new equity infusions. This upward movement suggests strengthening internal financing and improved net worth stability over time.

Financial Leverage

The financial leverage ratio, which is the measure of total assets to stockholders’ equity, shows a declining trend throughout the periods analyzed. Initially high at 2.78 in April 2020, the ratio drops consistently, reaching as low as 1.90 in October 2024 before slightly rising again towards the end of the timeframe. This downward trend indicates a reduction in the company’s reliance on debt financing relative to equity, suggesting a more conservative capital structure and potentially lower financial risk.

In summary, the company exhibits significant asset growth accompanied by a strong increase in equity. The decreasing financial leverage ratio denotes a shift towards greater equity financing and less dependence on liabilities. This financial pattern reflects an overall strengthening of the company’s balance sheet and a prudent management approach to capital structure over the examined quarters.