Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2013
- Return on Equity (ROE) since 2013
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Workday Inc., long-term (investment) activity 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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a consistent upward trend over the observed period, increasing from 3.87 in January 2020 to 6.82 in January 2025. This indicates improving efficiency in generating revenue from net fixed assets, reflecting potentially enhanced asset utilization or increased sales relative to fixed asset investment.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This metric also exhibits a steady increase, rising from 2.96 in January 2020 to 5.36 in January 2025. Although consistently lower than the standard net fixed asset turnover, the growth trend suggests improved effective use of both owned and leased fixed assets over the period.
- Total Asset Turnover
- Total asset turnover demonstrates a slight downward trend initially, decreasing from 0.53 in January 2020 to a low of 0.44 in January 2024, followed by a modest rebound to 0.47 in January 2025. This pattern implies a minor decline in the overall efficiency of asset utilization to generate revenue, with some improvement in the most recent period.
- Equity Turnover
- Equity turnover declines notably from 1.46 in January 2020 to 0.9 in January 2024, showing a reduction in revenue generated per unit of equity. A slight recovery to 0.93 in January 2025 indicates some stabilization, but the overall trend reflects decreasing efficiency in equity utilization over the five-year period.
Net Fixed Asset Turnover
Workday Inc., net fixed asset turnover 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) | |||||||
| Revenues | |||||||
| Property and equipment, net | |||||||
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | |||||||
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Net Fixed Asset Turnover, Sector | |||||||
| Software & Services | |||||||
| Net Fixed Asset Turnover, Industry | |||||||
| Information Technology | |||||||
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
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- The data reveals a consistent upward trajectory in revenues over the analyzed periods. Revenues increased from 3,627 million USD in January 2020 to 8,446 million USD forecasted for January 2025. The growth trend shows an accelerating pace, with average annual increases becoming larger year by year, highlighting robust top-line expansion.
- Property and Equipment, Net
- The net value of property and equipment demonstrates steady growth throughout the years. Starting at 936 million USD in January 2020, the asset base expands gradually to 1,239 million USD forecasted for January 2025. The rate of increase is moderate and relatively stable, indicating controlled investment in fixed assets.
- Net Fixed Asset Turnover
- There is a notable improvement in net fixed asset turnover ratio, rising from 3.87 in January 2020 to an estimated 6.82 in January 2025. This upward movement suggests increasing efficiency in utilizing fixed assets to generate revenue. The improving ratio implies effective asset management and enhanced productivity of the fixed asset base over time.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Workday Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | |||||||
| Revenues | |||||||
| Property and equipment, net | |||||||
| Operating lease right-of-use assets | |||||||
| Property and equipment, net (including operating lease, right-of-use asset) | |||||||
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | |||||||
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Software & Services | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Information Technology | |||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues exhibit a consistent upward trend over the examined period. Starting from 3,627 million USD in 2020, revenues increased steadily each year, reaching 8,446 million USD by 2025. This represents more than a twofold increase across the six years, indicating strong and sustained growth in the company's top-line performance.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease right-of-use assets, shows a generally upward trajectory, although with some fluctuations. The net assets increased from 1,227 million USD in 2020 to 1,387 million USD in 2021, followed by a slight decrease to 1,371 million USD in 2022. Thereafter, the value resumed an upward trend, reaching 1,575 million USD by 2025. Overall, this reflects ongoing investment and asset growth with minor variability in some years.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures how efficiently the company utilizes its fixed assets to generate revenue, improved significantly over the period. The ratio increased steadily from 2.96 in 2020 to 5.36 in 2025. This upward trend suggests enhanced asset utilization efficiency, as the company generated higher revenue per unit of fixed assets over time. The improvement in this ratio alongside revenue growth denotes effective management of asset capacity relative to sales expansion.
- Overall Analysis
- The data illustrates a scenario of robust revenue growth paired with moderate expansion in fixed assets. The sharp increase in asset turnover ratio confirms that the company is improving its operational efficiency, making better use of its property and equipment to support revenue growth. Despite some minor asset base fluctuations, the general trend points to an efficient scaling of operations and resource management over the analyzed period.
Total Asset Turnover
Workday Inc., total asset turnover 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) | |||||||
| Revenues | |||||||
| Total assets | |||||||
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | |||||||
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Total Asset Turnover, Sector | |||||||
| Software & Services | |||||||
| Total Asset Turnover, Industry | |||||||
| Information Technology | |||||||
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
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues exhibited a consistent upward trajectory throughout the analyzed period, increasing from $3,627 million in 2020 to a projected $8,446 million in 2025. This growth reflects a steady expansion, with an approximate 133% increase over six years, indicating the company’s strong sales performance and market demand.
- Total Assets Evolution
- Total assets also increased significantly, rising from $6,816 million in 2020 to a forecasted $17,977 million by 2025. The asset base more than doubled, suggesting ongoing investments in resources, infrastructure, or acquisitions to support business growth. The consistent increase denotes a robust asset accumulation strategy aligned with revenue growth.
- Total Asset Turnover Analysis
- The total asset turnover ratio declined from 0.53 in 2020 to a low of 0.44 in 2024 before slightly improving to 0.47 in 2025. This ratio measures how efficiently the company uses its assets to generate revenues. The downward trend indicates that asset efficiency decreased over most of the period, as asset growth outpaced revenue expansion. The slight uptick in the final year suggests a potential improvement or stabilization in asset utilization efficiency.
- Overall Insights
- The data reveals strong growth in both revenues and total assets, with asset accumulation occurring at a faster pace than revenue increases, leading to a decrease in asset turnover efficiency. This trend may imply that the company is investing heavily in its asset base ahead of revenue realization or facing challenges in leveraging assets effectively in the short term. The modest recovery in asset turnover near the end of the period may indicate efforts to enhance operational efficiency.
Equity Turnover
Workday Inc., equity turnover calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | |||||||
| Stockholders’ equity | |||||||
| Long-term Activity Ratio | |||||||
| Equity turnover1 | |||||||
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Equity Turnover, Sector | |||||||
| Software & Services | |||||||
| Equity Turnover, Industry | |||||||
| Information Technology | |||||||
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
Equity turnover = Revenues ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues show a consistent upward trend from 2020 to 2025, starting at 3,627 million USD in 2020 and increasing steadily each year. The growth accelerates over time, reaching 8,446 million USD by 2025, which represents more than a twofold increase over the six-year period. This indicates strong expansion in sales or service activity.
- Stockholders’ Equity
- Stockholders’ equity follows a notably increasing trajectory during the same timeframe. Beginning at 2,487 million USD in 2020, equity rises significantly each year and reaches 9,034 million USD by 2025. The rate of increase is especially pronounced from 2023 onward, suggesting enhanced capital accumulation, retained earnings growth, or additional equity financing.
- Equity Turnover Ratio
- The equity turnover ratio demonstrates a steady decline over the years, falling from 1.46 in 2020 to approximately 0.93 by 2025. This ratio, reflecting the efficiency with which equity supports revenue generation, indicates that revenues are growing at a slower pace relative to equity. The declining ratio may imply diminishing operational efficiency in relation to equity or a strategic decision to maintain a larger equity base relative to revenue size.
- Overall Insights
- The data suggests strong financial growth with increasing revenues and expanding equity base. However, the declining equity turnover ratio indicates that revenue growth is not keeping pace proportionally with equity growth, which could affect return on equity metrics. Careful attention to operational efficiency and capital deployment may be warranted to ensure sustained performance alignment.