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Workday (NAS:WDAY) Operating Income

: $-169 Mil (TTM As of Apr. 2023)
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Workday's Operating Income for the three months ended in Apr. 2023 was $-20 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2023 was $-169 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Workday's Operating Income for the three months ended in Apr. 2023 was $-20 Mil. Workday's Revenue for the three months ended in Apr. 2023 was $1,684 Mil. Therefore, Workday's Operating Margin % for the quarter that ended in Apr. 2023 was -1.18%.

Good Sign:

Workday Inc operating margin is expanding. Margin expansion is usually a good sign.

Workday's 5-Year average Growth Rate for Operating Margin % was 32.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Workday's annualized ROC % for the quarter that ended in Apr. 2023 was -0.02%. Workday's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2023 was 9.70%.


Workday Operating Income Historical Data

The historical data trend for Workday's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Workday Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -463.28 -502.23 -248.60 -116.45 -222.20

Workday Quarterly Data
Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -72.84 -34.08 -26.32 -88.96 -19.80

Workday Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Apr. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-169 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Workday  (NAS:WDAY) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Workday's annualized ROC % for the quarter that ended in Apr. 2023 is calculated as:

ROC % (Q: Apr. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2023 ) + Invested Capital (Q: Apr. 2023 ))/ count )
=-79.2 * ( 1 - 98.03% )/( (9592.298 + 9083.034)/ 2 )
=-1.56024/9337.666
=-0.02 %

where

Invested Capital(Q: Jan. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=13486.238 - 413.882 - ( 6121.394 - max(0, 4628.166 - 8108.224+6121.394))
=9592.298

Invested Capital(Q: Apr. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=13252.796 - 340.758 - ( 6328.961 - max(0, 4044.089 - 7873.093+6328.961))
=9083.034

Note: The Operating Income data used here is four times the quarterly (Apr. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Workday's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2023  Q: Apr. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=141.82/( ( (1450.532 + max(-2549.993, 0)) + (1472.776 + max(-2404.949, 0)) )/ 2 )
=141.82/( ( 1450.532 + 1472.776 )/ 2 )
=141.82/1461.654
=9.70 %

where Working Capital is:

Working Capital(Q: Jan. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1570.086 + 0 + 416.744) - (413.882 + 3559.393 + 563.548)
=-2549.993

Working Capital(Q: Apr. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1089.286 + 0 + 454.846) - (340.758 + 3227.55 + 380.773)
=-2404.949

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Workday's Operating Margin % for the quarter that ended in Apr. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2023 )/Revenue (Q: Apr. 2023 )
=-19.8/1684.312
=-1.18 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Workday Operating Income Related Terms

Thank you for viewing the detailed overview of Workday's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Workday (NAS:WDAY) Business Description

Workday logo
Traded in Other Exchanges
Address
6110 Stoneridge Mall Road, Pleasanton, CA, USA, 94588
Workday is a software company that offers human capital management, or HCM, financial management, and business planning solutions. Known for being a cloud-only software provider, Workday is headquartered in Pleasanton, California. Founded in 2005, Workday now employs over 12,000 employees.
Executives
Frederick Wayne A.i. director 500 W MAIN ST., LOUISVILLE KY 40202
David A Duffield 10 percent owner C/O WORKDAY, INC., 6230 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Michael M Mcnamara director C/O FLEXTRONICS INTERNATIONAL LTD, 2090 FORTUNE DRIVE, SAN JOSE CA 95131
Thomas F Bogan director C/O WORKDAY, INC., 6110 STONERIDGE MALL RD, PLEASANTON CA 94588
Barbara A Larson officer: Chief Financial Officer 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Douglas A. Robinson officer: Co-President 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Lynne M Doughtie director C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, MC 5003-1001, CHICAGO IL 60606-1596
Michael C Bush director 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Richard Harry Sauer officer: EVP, General Counsel & Secty 6110 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Ann Marie Campbell director 2455 PACES FERRY ROAD, ATLANTA GA 30339
Petros Dermetzis officer: Chief Products Officer 321 LIVORNA HEIGHTS ROAD, ALAMO CA 94507
Carl M. Eschenbach director C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, PALO ALTO CA 94025
Gomez Luciano Fernandez officer: Co-President 1A SHAWFIELD STREET,, RICHARDSON HOUSE, LONDON X0 SW3 4BA
Styslinger Lee J Iii director 2826 BALMORAL ROAD, BIRMINGHAM AL 35223
Robynne Sisco officer: Chief Financial Officer 3401 HILLVIEW AVENUE, PALO ALTO CA 94304

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