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Workday (NAS:WDAY) ROA %

: 0.00% (As of Apr. 2023)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Workday's annualized Net Income for the quarter that ended in Apr. 2023 was $1 Mil. Workday's average Total Assets over the quarter that ended in Apr. 2023 was $13,370 Mil. Therefore, Workday's annualized ROA % for the quarter that ended in Apr. 2023 was 0.00%.

The historical rank and industry rank for Workday's ROA % or its related term are showing as below:

WDAY' s ROA % Range Over the Past 10 Years
Min: -12.83   Med: -7.91   Max: 0.31
Current: -2.03

During the past 13 years, Workday's highest ROA % was 0.31%. The lowest was -12.83%. And the median was -7.91%.

WDAY's ROA % is ranked worse than
57.31% of 2750 companies
in the Software industry
Industry Median: 0.45 vs WDAY: -2.03

Workday ROA % Historical Data

The historical data trend for Workday's ROA % 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
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.99 -7.79 -3.64 0.31 -3.06

Workday Quarterly Data
Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23
ROA % 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 -3.51 -1.97 -2.33 -3.89 -

Competitive Comparison

For the Software - Application subindustry, Workday's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Workday ROA % Distribution

For the Software industry and Technology sector, Workday's ROA % distribution charts can be found below:

* The bar in red indicates where Workday's ROA % falls in comparison to its industry or sector. The grey bar indicates the ROA %'s extreme value range as defined by GuruFocus.



Workday ROA % Calculation

Workday's annualized ROA % for the fiscal year that ended in Jan. 2023 is calculated as:

ROA %=Net Income (A: Jan. 2023 )/( (Total Assets (A: Jan. 2022 )+Total Assets (A: Jan. 2023 ))/ count )
=-366.749/( (10498.505+13486.238)/ 2 )
=-366.749/11992.3715
=-3.06 %

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

ROA %=Net Income (Q: Apr. 2023 )/( (Total Assets (Q: Jan. 2023 )+Total Assets (Q: Apr. 2023 ))/ count )
=0.544/( (13486.238+13252.796)/ 2 )
=0.544/13369.517
=0.00 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Apr. 2023) net income data. ROA % is displayed in the 30-year financial page.


Workday  (NAS:WDAY) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Apr. 2023 )
=Net Income/Total Assets
=0.544/13369.517
=(Net Income / Revenue)*(Revenue / Total Assets)
=(0.544 / 6737.248)*(6737.248 / 13369.517)
=Net Margin %*Asset Turnover
=0.01 %*0.5039
=0.00 %

Note: The Net Income data used here is four times the quarterly (Apr. 2023) net income data. The Revenue data used here is four times the quarterly (Apr. 2023) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Workday ROA % Related Terms

Thank you for viewing the detailed overview of Workday's ROA % 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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