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Workday (NAS:WDAY) Debt-to-EBITDA

: 20.01 (As of Jan. 2023)
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Debt-to-EBITDA measures a company's ability to pay off its debt.

Workday's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2023 was $91 Mil. Workday's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2023 was $3,158 Mil. Workday's annualized EBITDA for the quarter that ended in Jan. 2023 was $162 Mil. Workday's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2023 was 20.01.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Workday's Debt-to-EBITDA or its related term are showing as below:

WDAY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -11.09   Med: -3.18   Max: 25.63
Current: 15.71

During the past 13 years, the highest Debt-to-EBITDA Ratio of Workday was 25.63. The lowest was -11.09. And the median was -3.18.

WDAY's Debt-to-EBITDA is ranked worse than
95.76% of 1440 companies
in the Software industry
Industry Median: 1.09 vs WDAY: 15.71

Workday Debt-to-EBITDA Historical Data

The historical data trend for Workday's Debt-to-EBITDA 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
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.28 -10.64 25.63 5.59 15.71

Workday Quarterly Data
Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23
Debt-to-EBITDA 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 58.38 100.94 19.77 8.21 20.01

Competitive Comparison

For the Software - Application subindustry, Workday's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA Distribution

For the Software industry and Technology sector, Workday's Debt-to-EBITDA distribution charts can be found below:

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



Workday Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Workday's Debt-to-EBITDA for the fiscal year that ended in Jan. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(91.343 + 3157.733) / 206.76
=15.71

Workday's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(91.343 + 3157.733) / 162.368
=20.01

* 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 Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jan. 2023) EBITDA data.


Workday  (NAS:WDAY) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Workday Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Workday's Debt-to-EBITDA 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

Workday (NAS:WDAY) Headlines