Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Workday Inc., short-term (operating) 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).
- Receivables Turnover
- The receivables turnover ratio remained relatively stable over the observed period, fluctuating within a narrow range from 3.96 to 4.43. After a slight decline from 4.13 in 2020 to 3.96 in 2023, there was a moderate rebound to 4.43 in 2024, followed by a small decrease to 4.33 in 2025. This suggests a consistent efficiency in collecting receivables, with minor variations year to year.
- Payables Turnover
- The payables turnover ratio demonstrated considerable volatility. It dropped from 18.51 in 2020 to 15.85 in 2021, surged to 25.74 in 2022, then sharply declined again to 11.16 in 2023. The ratio increased thereafter to 22.71 in 2024 but decreased to 19.16 in 2025. These fluctuations may indicate inconsistent payment practices or varying supplier credit terms over the years.
- Working Capital Turnover
- The working capital turnover ratio exhibited significant instability. Starting at a high of 28.97 in 2020, it plunged to 8.31 in 2021, spiked back to 35.15 in 2022, and then drastically decreased to 1.79 in 2023. The ratio remained low in subsequent years at 1.49 in 2024 and rose slightly to 1.69 in 2025. Such erratic movements suggest considerable changes in working capital management or fluctuations in sales relative to working capital during this period.
- Average Receivable Collection Period (Days)
- The days sales outstanding stayed relatively consistent, with minor fluctuations. The period was 88 days in 2020 and 2022, dropped to 87 in 2021, increased slightly to 92 in 2023, improved to 82 in 2024, and then marginally increased to 84 in 2025. This reflects a fairly stable collection cycle with slight improvement in the latest years, indicating effective receivables management.
- Average Payables Payment Period (Days)
- The average payables payment period revealed variability across the years. It increased from 20 days in 2020 to 23 days in 2021, shortened to 14 days in 2022, then expanded sharply to 33 days in 2023. Following that peak, it decreased again to 16 days in 2024 and then slightly increased to 19 days in 2025. These shifts suggest changing payment timing strategies or negotiation terms with suppliers over the given timeframe.
Turnover Ratios
Average No. Days
Receivables Turnover
Workday Inc., receivables 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 | 8,446) | 7,259) | 6,216) | 5,139) | 4,318) | 3,627) | |
| Trade and other receivables, net of allowance for credit losses | 1,950) | 1,639) | 1,570) | 1,243) | 1,032) | 878) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 4.33 | 4.43 | 3.96 | 4.14 | 4.18 | 4.13 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Accenture PLC | — | 5.47 | 6.00 | 5.87 | 5.74 | 6.16 | |
| Adobe Inc. | — | 10.38 | 8.73 | 8.53 | 8.41 | 9.20 | |
| Cadence Design Systems Inc. | — | 6.82 | 8.36 | 7.32 | 8.85 | 7.93 | |
| CrowdStrike Holdings Inc. | 3.50 | 3.58 | 3.58 | 3.94 | 3.66 | 2.92 | |
| Fair Isaac Corp. | — | 4.03 | 3.90 | 4.27 | 4.22 | 3.87 | |
| International Business Machines Corp. | — | 9.22 | 8.57 | 9.25 | 8.49 | 10.32 | |
| Intuit Inc. | — | 35.63 | 35.48 | 28.53 | 24.64 | 51.54 | |
| Microsoft Corp. | — | 4.31 | 4.35 | 4.48 | 4.42 | 4.47 | |
| Oracle Corp. | 6.71 | 6.73 | 7.22 | 7.13 | 7.48 | 7.04 | |
| Palantir Technologies Inc. | — | 4.98 | 6.10 | 7.38 | 8.08 | 6.96 | |
| Palo Alto Networks Inc. | — | 3.07 | 2.80 | 2.57 | 3.43 | 3.29 | |
| Salesforce Inc. | 3.17 | 3.05 | 2.92 | 2.72 | 2.73 | 2.77 | |
| ServiceNow Inc. | — | 4.90 | 4.41 | 4.20 | 4.24 | 4.48 | |
| Synopsys Inc. | — | 6.56 | 6.17 | 6.38 | 7.40 | 4.72 | |
| Receivables Turnover, Sector | |||||||
| Software & Services | — | 5.06 | 5.13 | 5.19 | 5.22 | 5.57 | |
| Receivables Turnover, Industry | |||||||
| Information Technology | — | 6.97 | 7.45 | 7.42 | 7.52 | 7.91 | |
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
Receivables turnover = Revenues ÷ Trade and other receivables, net of allowance for credit losses
= 8,446 ÷ 1,950 = 4.33
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues exhibited a consistent upward trajectory throughout the analyzed periods. Starting at $3,627 million in January 31, 2020, revenues increased annually, reaching $8,446 million by January 31, 2025. This represents a compound growth indicative of expanding business operations and market demand over the six-year span.
- Trade and Other Receivables
- The net trade and other receivables increased steadily from $878 million in January 31, 2020, to $1,950 million by January 31, 2025. This growth correlates with increasing revenues, reflecting a proportional rise in credit extended to customers or billing outstanding at financial period ends.
- Receivables Turnover Ratio
- The receivables turnover ratio remained relatively stable over the period, with minor fluctuations. Beginning at 4.13 in January 31, 2020, it held close to this level through the years, dipping slightly to 3.96 in January 31, 2023, before recovering to 4.33 in January 31, 2025. This suggests that the efficiency in collecting receivables remained generally consistent, with no significant deterioration or improvement in collection practices despite the growth in receivables and revenues.
- Overall Analysis
- The simultaneous increase in revenues and trade receivables, alongside a stable receivables turnover ratio, indicates that the company's credit policies and collection efficiency have been maintained effectively during a period of business expansion. The receivables growth aligns with revenue increases, mitigating concerns of deteriorating cash collections or worsening credit risks. The slight variations in the turnover ratio do not imply substantial changes to working capital management.
Payables Turnover
Workday Inc., payables turnover calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Costs of revenues | 2,069) | 1,771) | 1,715) | 1,428) | 1,198) | 1,065) | |
| Accounts payable | 108) | 78) | 154) | 55) | 76) | 58) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 19.16 | 22.71 | 11.16 | 25.74 | 15.85 | 18.51 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Accenture PLC | — | 15.94 | 17.41 | 16.37 | 15.03 | 22.48 | |
| Adobe Inc. | — | 6.53 | 7.50 | 5.71 | 5.98 | 5.63 | |
| Cadence Design Systems Inc. | — | 116.56 | 4.77 | 7.89 | — | — | |
| CrowdStrike Holdings Inc. | 7.58 | 26.82 | 13.25 | 8.05 | 19.03 | 105.30 | |
| Fair Isaac Corp. | — | 15.49 | 16.36 | 17.49 | 16.02 | 15.68 | |
| International Business Machines Corp. | — | 6.75 | 6.67 | 6.87 | 6.54 | 7.75 | |
| Intuit Inc. | — | 4.81 | 4.93 | 3.26 | 2.70 | 4.52 | |
| Microsoft Corp. | — | 3.37 | 3.64 | 3.30 | 3.44 | 3.68 | |
| Oracle Corp. | 3.31 | 6.42 | 11.27 | 6.74 | 10.54 | 12.46 | |
| Palantir Technologies Inc. | — | 5,495.05 | 35.56 | 9.12 | 4.53 | 21.55 | |
| Palo Alto Networks Inc. | — | 17.71 | 14.43 | 13.43 | 22.41 | 15.72 | |
| Salesforce Inc. | — | — | — | — | — | — | |
| ServiceNow Inc. | — | 33.63 | 15.25 | 5.74 | 15.20 | 28.83 | |
| Synopsys Inc. | — | 6.01 | 7.84 | 28.30 | 31.44 | 26.49 | |
| Payables Turnover, Sector | |||||||
| Software & Services | — | 5.63 | 6.26 | 5.58 | 5.76 | 6.65 | |
| Payables Turnover, Industry | |||||||
| Information Technology | — | 4.27 | 4.79 | 4.25 | 4.63 | 4.92 | |
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
Payables turnover = Costs of revenues ÷ Accounts payable
= 2,069 ÷ 108 = 19.16
2 Click competitor name to see calculations.
- Costs of Revenues
- The costs of revenues have demonstrated a consistent upward trend over the analyzed periods. Starting at $1,065 million in early 2020, the costs increased steadily each year, reaching $2,069 million by early 2025. This represents nearly a doubling over five years, indicating potentially higher production or service delivery costs, expansion in operations, or increased input prices.
- Accounts Payable
- The accounts payable values exhibit notable fluctuations rather than a clear trend. Beginning at $58 million in 2020, the amount increased to $76 million in 2021 but then decreased to $55 million in 2022. A significant spike occurred in 2023, reaching $154 million, followed by a decline to $78 million in 2024 and a moderate increase to $108 million in 2025. This inconsistent pattern suggests variability in supplier payment timing or credit terms over the years.
- Payables Turnover Ratio
- The payables turnover ratio presents considerable variability as well. The ratio declined from 18.51 in 2020 to 15.85 in 2021, suggesting slower payments relative to purchases. In 2022, the ratio surged to 25.74, indicating faster payment cycles. However, 2023 saw a sharp fall to 11.16, signaling extended payment periods. The ratio increased again in 2024 to 22.71 and slightly declined to 19.16 in 2025. These oscillations imply changes in payment policies or liquidity that affect how quickly the company settles its payables.
Working Capital Turnover
Workday Inc., working capital turnover calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 10,545) | 9,939) | 8,108) | 5,214) | 4,802) | 3,095) | |
| Less: Current liabilities | 5,548) | 5,055) | 4,628) | 5,068) | 4,283) | 2,969) | |
| Working capital | 4,997) | 4,884) | 3,480) | 146) | 519) | 125) | |
| Revenues | 8,446) | 7,259) | 6,216) | 5,139) | 4,318) | 3,627) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 1.69 | 1.49 | 1.79 | 35.15 | 8.31 | 28.97 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Accenture PLC | — | 34.49 | 11.93 | 15.07 | 12.77 | 8.71 | |
| Adobe Inc. | — | 30.25 | 6.85 | 20.28 | 9.09 | 4.89 | |
| Cadence Design Systems Inc. | — | 1.75 | 10.61 | 9.92 | 4.01 | 3.94 | |
| CrowdStrike Holdings Inc. | 1.49 | 1.48 | 1.46 | 1.25 | 0.61 | 0.71 | |
| Fair Isaac Corp. | — | 7.24 | 8.02 | 8.99 | — | 10.83 | |
| International Business Machines Corp. | — | 46.83 | — | — | — | — | |
| Intuit Inc. | — | 7.45 | 8.13 | 8.98 | 3.85 | 1.73 | |
| Microsoft Corp. | — | 7.12 | 2.65 | 2.66 | 1.76 | 1.30 | |
| Oracle Corp. | — | — | — | 3.50 | 1.29 | 1.12 | |
| Palantir Technologies Inc. | — | 0.58 | 0.66 | 0.78 | 0.70 | 0.66 | |
| Palo Alto Networks Inc. | — | — | — | — | — | 1.40 | |
| Salesforce Inc. | 21.69 | 14.27 | 62.21 | 24.95 | 5.11 | 15.29 | |
| ServiceNow Inc. | — | 13.25 | 21.77 | 11.16 | 21.76 | 5.76 | |
| Synopsys Inc. | — | 1.60 | 13.12 | 21.34 | 10.65 | 9.00 | |
| Working Capital Turnover, Sector | |||||||
| Software & Services | — | 10.32 | 5.14 | 4.74 | 2.76 | 2.19 | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | — | 8.99 | 5.81 | 6.50 | 4.35 | 3.31 | |
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
Working capital turnover = Revenues ÷ Working capital
= 8,446 ÷ 4,997 = 1.69
2 Click competitor name to see calculations.
- Working Capital
- Working capital displays a significant upward trend from 2020 to 2025, increasing from 125 million US dollars in 2020 to 4,997 million US dollars in 2025. This growth is marked by a particularly sharp rise between 2022 and 2023, where working capital jumps from 146 million to 3,480 million, and continues to grow steadily thereafter.
- Revenues
- Revenues have consistently increased over the six-year period, rising from 3,627 million US dollars in 2020 to 8,446 million US dollars in 2025. The growth rate appears steady and positive, reflecting an ongoing expansion of the company's top-line performance.
- Working Capital Turnover
- The working capital turnover ratio exhibits a fluctuating pattern. It starts high at 28.97 in 2020 but decreases sharply to 8.31 in 2021. The ratio rebounds to 35.15 in 2022, indicating efficient use of working capital to generate revenues. However, from 2023 onwards, the turnover ratio declines markedly to 1.79 in 2023 and continues a slight downward trend to 1.49 in 2024 before a minor recovery to 1.69 in 2025. This decline suggests declining efficiency in utilizing working capital relative to revenue generation despite the growth in absolute working capital and revenues.
- Summary Insights
- The data reveals strong growth in both working capital and revenues, indicating expanding business scale and available short-term resources. However, the decreasing working capital turnover ratio in recent years implies a deterioration in how effectively the company converts working capital into sales. This trend may warrant analysis to identify underlying causes such as increases in inventory, receivables, or other current assets that are not contributing proportionally to revenue growth.
Average Receivable Collection Period
Workday Inc., average receivable collection period 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 | |||||||
| Receivables turnover | 4.33 | 4.43 | 3.96 | 4.14 | 4.18 | 4.13 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 84 | 82 | 92 | 88 | 87 | 88 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Accenture PLC | — | 67 | 61 | 62 | 64 | 59 | |
| Adobe Inc. | — | 35 | 42 | 43 | 43 | 40 | |
| Cadence Design Systems Inc. | — | 54 | 44 | 50 | 41 | 46 | |
| CrowdStrike Holdings Inc. | 104 | 102 | 102 | 93 | 100 | 125 | |
| Fair Isaac Corp. | — | 91 | 94 | 85 | 87 | 94 | |
| International Business Machines Corp. | — | 40 | 43 | 39 | 43 | 35 | |
| Intuit Inc. | — | 10 | 10 | 13 | 15 | 7 | |
| Microsoft Corp. | — | 85 | 84 | 81 | 83 | 82 | |
| Oracle Corp. | 54 | 54 | 51 | 51 | 49 | 52 | |
| Palantir Technologies Inc. | — | 73 | 60 | 49 | 45 | 52 | |
| Palo Alto Networks Inc. | — | 119 | 130 | 142 | 106 | 111 | |
| Salesforce Inc. | 115 | 120 | 125 | 134 | 134 | 132 | |
| ServiceNow Inc. | — | 74 | 83 | 87 | 86 | 82 | |
| Synopsys Inc. | — | 56 | 59 | 57 | 49 | 77 | |
| Average Receivable Collection Period, Sector | |||||||
| Software & Services | — | 72 | 71 | 70 | 70 | 65 | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | — | 52 | 49 | 49 | 49 | 46 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.33 = 84
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio shows a relatively stable trend over the six-year period. It started at 4.13 in 2020, increased slightly to 4.18 in 2021, then marginally declined in 2022 to 4.14. In 2023, there was a noticeable drop to 3.96, indicating a slower rate of receivables collection during that year. However, the ratio recovered to 4.43 in 2024 and slightly decreased again to 4.33 in 2025. Overall, the receivables turnover suggests consistent, though somewhat fluctuating, efficiency in collection efforts with a peak in 2024.
- Average Receivable Collection Period
- The average receivable collection period, expressed in days, generally mirrors the inverse movement of the receivables turnover ratio. The period shortened marginally from 88 days in 2020 to 87 days in 2021, then returned to 88 days in 2022. The collection period extended noticeably to 92 days in 2023, reflecting slower collections consistent with the drop in turnover ratio that year. Following this increase, the collection period significantly decreased to 82 days in 2024, indicating improved efficiency, and slightly edged higher to 84 days in 2025. This pattern underlines a temporary deterioration in collection speed in 2023, followed by a marked improvement thereafter.
- Overall Insight
- The data suggests that receivables management was generally stable with some variability. The year 2023 appears to be an anomaly with less favorable receivables turnover and longer collection periods, indicating potential challenges in collections or changes in credit terms. The subsequent recovery in 2024 and 2025 implies renewed effectiveness in managing receivables. Maintaining or improving these favorable trends could support healthier cash flow positioning in future periods.
Average Payables Payment Period
Workday Inc., average payables payment period 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 | |||||||
| Payables turnover | 19.16 | 22.71 | 11.16 | 25.74 | 15.85 | 18.51 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 19 | 16 | 33 | 14 | 23 | 20 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Accenture PLC | — | 23 | 21 | 22 | 24 | 16 | |
| Adobe Inc. | — | 56 | 49 | 64 | 61 | 65 | |
| Cadence Design Systems Inc. | — | 3 | 77 | 46 | — | — | |
| CrowdStrike Holdings Inc. | 48 | 14 | 28 | 45 | 19 | 3 | |
| Fair Isaac Corp. | — | 24 | 22 | 21 | 23 | 23 | |
| International Business Machines Corp. | — | 54 | 55 | 53 | 56 | 47 | |
| Intuit Inc. | — | 76 | 74 | 112 | 135 | 81 | |
| Microsoft Corp. | — | 108 | 100 | 111 | 106 | 99 | |
| Oracle Corp. | 110 | 57 | 32 | 54 | 35 | 29 | |
| Palantir Technologies Inc. | — | 0 | 10 | 40 | 81 | 17 | |
| Palo Alto Networks Inc. | — | 21 | 25 | 27 | 16 | 23 | |
| Salesforce Inc. | — | — | — | — | — | — | |
| ServiceNow Inc. | — | 11 | 24 | 64 | 24 | 13 | |
| Synopsys Inc. | — | 61 | 47 | 13 | 12 | 14 | |
| Average Payables Payment Period, Sector | |||||||
| Software & Services | — | 65 | 58 | 65 | 63 | 55 | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | — | 86 | 76 | 86 | 79 | 74 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 19.16 = 19
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibited notable fluctuations over the examined periods. Initially, it decreased from 18.51 in 2020 to 15.85 in 2021, indicating a slower rate of payment to suppliers during that interval. In 2022, the ratio surged significantly to 25.74, suggesting a much faster payment cycle. However, this was followed by a sharp decline to 11.16 in 2023, implying a considerable slowdown in the frequency of payables turnover. The ratio recovered in 2024 to 22.71 but then dropped again to 19.16 in 2025. Overall, the ratio shows volatility, with no clear linear trend, reflecting variable payment practices or changes in supplier terms.
- Average Payables Payment Period
- The average payables payment period in days also displayed significant variability over the years. Starting at 20 days in 2020, it lengthened slightly to 23 days in 2021. In 2022, the period contracted substantially to 14 days, consistent with the spike in payables turnover ratio seen in the same year. The payment period peaked in 2023 at 33 days, indicating a slowdown in payments, correlating with the drop in payables turnover. It then shortened again in 2024 to 16 days and rose modestly to 19 days in 2025. This alternating pattern illustrates inconsistent payment timings, oscillating between faster and slower settlements over the time frame.
- Insights
- The inverse relationship between payables turnover and average payment period is evident, as expected, with shorter payment periods corresponding to higher turnover ratios and vice versa. The volatility in these metrics suggests that the company's payment policies or external factors affecting supplier terms may have fluctuated significantly. There is a lack of sustained improvement or deterioration, pointing to episodic shifts rather than a steady strategy toward payables management.