Workday Inc. (NASDAQ:WDAY)

The financial data reveals several noteworthy trends in earnings performance over the analyzed periods.

Net Income (Loss)

The company experienced negative net income in the years ending January 31, 2020, 2021, and 2023, with the most significant loss of -481 million USD in 2020. A turnaround occurred in 2022 with a modest positive net income of 29 million USD. This positive trend strengthened substantially in 2024, reaching a peak of 1,381 million USD, before declining to 526 million USD in 2025. Overall, the pattern indicates considerable volatility but a general recovery trend culminating in strong profitability in the latter years.

Earnings Before Tax (EBT)

EBT mirrored the net income trend closely. It showed negative values in 2020 (-482 million USD), 2021 (-275 million USD), and 2023 (-260 million USD). Positive earnings began in 2022 at 16 million USD, with a significant increase in 2024 to 356 million USD, and further improvement to 638 million USD in 2025. The data signifies a recovery from losses toward positive pretax earnings over the period.

Earnings Before Interest and Tax (EBIT)

EBIT figures also transitioned from losses to gains over the period. The value declined from -424 million USD in 2020 to -206 million USD in 2021, briefly turning positive in 2022 at 33 million USD. Despite slipping back to a loss of -158 million USD in 2023, EBIT surged to 470 million USD in 2024 and further to 752 million USD in 2025. This indicates operational improvements and better core profitability in the last two years.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)

The EBITDA figures demonstrated a more consistent upward trend. After a negative EBITDA of -147 million USD in 2020, the company moved into positive territory with 87 million USD in 2021 and continued strong growth to 377 million USD in 2022. A decline to 207 million USD occurred in 2023, but the earnings resumed a substantial upward trajectory with 752 million USD in 2024 and 1,078 million USD in 2025. This recovery suggests improving operational cash flow performance and margin expansion.

In summary, the company experienced considerable fluctuations in profitability over the analyzed periods, with initial losses giving way to consistent gains by the end of the timeline. The most pronounced improvements were observed in EBITDA and EBIT, indicating enhanced operational efficiency. Despite some volatility, the overall trend reflects a significant recovery in earnings both before and after tax, highlighting improved financial health and performance in recent years.

The data reveals notable fluctuations in the company's enterprise value (EV) and earnings before interest, tax, depreciation, and amortization (EBITDA) over the observed periods.

Enterprise Value (EV)

The enterprise value increased substantially from $37,960 million in January 2020 to a peak of $58,514 million in January 2021. Following this peak, there was a decline to $44,751 million in January 2023, representing a significant reduction. The EV then surged again to $64,947 million in January 2024, before slightly decreasing to $59,586 million in January 2025. This pattern suggests periods of volatility with repeated rises and falls in the company's valuation in the market.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA transitioned from a negative figure of -$147 million in January 2020 to a positive and growing trend thereafter. There was an increase to $87 million in January 2021, followed by continued growth to $377 million in January 2022. Although a dip occurred to $207 million in January 2023, the values rebounded strongly to $752 million in January 2024 and further to $1,078 million in January 2025. This indicates improving operational profitability over the long term, despite some short-term volatility.

EV/EBITDA Ratio

The EV/EBITDA ratio began at an undefined or not applicable level in January 2020, due to the negative EBITDA. It then fell sharply from a very high 670.04 in January 2021 to 147.9 in January 2022, signaling a relative improvement in valuation against earnings. The ratio rose again to 216.44 in January 2023, corresponding with the drop in EBITDA. Subsequent ratios decreased to 86.37 in January 2024 and further down to 55.27 in January 2025, reflecting an increasingly favorable valuation multiple as EBITDA improved and enterprise value stabilized.

Overall, the financial data indicates an initial period of instability and valuation challenges followed by a trend toward stronger earnings and more reasonable valuation multiples in recent years. The significant increase in EBITDA combined with somewhat moderated EV levels has resulted in a declining EV/EBITDA ratio, which typically suggests enhanced operational efficiency and potentially improved investor perceptions regarding the business's profitability.