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Workday (NAS:WDAY) Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Workday has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Workday's Piotroski F-Score or its related term are showing as below:

WDAY' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 5   Max: 6
Current: 5

During the past 13 years, the highest Piotroski F-Score of Workday was 6. The lowest was 4. And the median was 5.


Workday Piotroski F-Score Historical Data

The historical data trend for Workday's Piotroski F-Score 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
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 4.00 6.00 5.00 5.00

Workday Quarterly Data
Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23
Piotroski F-Score 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 5.00 5.00 4.00 4.00 5.00

Competitive Comparison

For the Software - Application subindustry, Workday's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Software industry and Technology sector, Workday's Piotroski F-Score distribution charts can be found below:

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


How is the Piotroski F-Score calculated?

* 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.

This Year (Jan23) TTM:Last Year (Jan22) TTM:
Net Income was -102.173 + -64.158 + -74.721 + -125.697 = $-367 Mil.
Cash Flow from Operations was 439.717 + 114.358 + 408.668 + 694.452 = $1,657 Mil.
Revenue was 1434.657 + 1535.798 + 1599.103 + 1646.26 = $6,216 Mil.
Gross Profit was 1031.836 + 1112.713 + 1163.31 + 1192.781 = $4,501 Mil.
Average Total Assets from the begining of this year (Jan22)
to the end of this year (Jan23) was
(10498.505 + 12799.106 + 13249.55 + 12389.787 + 13486.238) / 5 = $12484.6372 Mil.
Total Assets at the begining of this year (Jan22) was $10,499 Mil.
Long-Term Debt & Capital Lease Obligation was $3,158 Mil.
Total Current Assets was $8,108 Mil.
Total Current Liabilities was $4,628 Mil.
Net Income was -46.522 + 105.736 + 43.412 + -73.253 = $29 Mil.

Revenue was 1175.033 + 1260.361 + 1327.263 + 1376.141 = $5,139 Mil.
Gross Profit was 841.98 + 914.84 + 967.539 + 986.344 = $3,711 Mil.
Average Total Assets from the begining of last year (Jan21)
to the end of last year (Jan22) was
(8718.411 + 8624.007 + 9113.845 + 9440.883 + 10498.505) / 5 = $9279.1302 Mil.
Total Assets at the begining of last year (Jan21) was $8,718 Mil.
Long-Term Debt & Capital Lease Obligation was $800 Mil.
Total Current Assets was $5,214 Mil.
Total Current Liabilities was $5,068 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Workday's current Net Income (TTM) was -367. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Workday's current Cash Flow from Operations (TTM) was 1,657. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jan22)
=-366.749/10498.505
=-0.03493345

ROA (Last Year)=Net Income/Total Assets (Jan21)
=29.373/8718.411
=0.00336908

Workday's return on assets of this year was -0.03493345. Workday's return on assets of last year was 0.00336908. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Workday's current Net Income (TTM) was -367. Workday's current Cash Flow from Operations (TTM) was 1,657. ==> 1,657 > -367 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jan23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jan22 to Jan23
=3157.733/12484.6372
=0.2529295

Gearing (Last Year: Jan22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jan21 to Jan22
=799.81/9279.1302
=0.0861945

Workday's gearing of this year was 0.2529295. Workday's gearing of last year was 0.0861945. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jan23)=Total Current Assets/Total Current Liabilities
=8108.224/4628.166
=1.75193025

Current Ratio (Last Year: Jan22)=Total Current Assets/Total Current Liabilities
=5214.065/5067.855
=1.02885047

Workday's current ratio of this year was 1.75193025. Workday's current ratio of last year was 1.02885047. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Workday's number of shares in issue this year was 257.351. Workday's number of shares in issue last year was 254.377. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=4500.64/6215.818
=0.72406238

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3710.703/5138.798
=0.72209552

Workday's gross margin of this year was 0.72406238. Workday's gross margin of last year was 0.72209552. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jan22)
=6215.818/10498.505
=0.59206697

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jan21)
=5138.798/8718.411
=0.5894191

Workday's asset turnover of this year was 0.59206697. Workday's asset turnover of last year was 0.5894191. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+0+1+0+1+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Workday has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Workday  (NAS:WDAY) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Workday Piotroski F-Score Related Terms

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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

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