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: 3 Med: 5 Max: 7
Current: 5

During the past 13 years, the highest Piotroski F-Score of Workday was 7. The lowest was 3. 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

4.00

6.00

5.00

Workday Quarterly Data
	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23
Piotroski F-Score																5.00	4.00	4.00	5.00	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.

Annual Data Quarterly Data

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?

This Year (Apr23) TTM:

Last Year (Apr22) TTM:

Net Income was -64.158 + -74.721 + -125.697 + 0.136 = $-264 Mil.
Cash Flow from Operations was 114.358 + 408.668 + 694.452 + 277.316 = $1,495 Mil.
Revenue was 1535.798 + 1599.103 + 1646.26 + 1684.312 = $6,465 Mil.
Gross Profit was 1112.713 + 1163.31 + 1192.781 + 1266.868 = $4,736 Mil.
Average Total Assets from the begining of this year (Apr22)
to the end of this year (Apr23) was
(12799.106 + 13249.55 + 12389.787 + 13486.238 + 13252.796) / 5 = $13035.4954 Mil.
Total Assets at the begining of this year (Apr22) was $12,799 Mil.
Long-Term Debt & Capital Lease Obligation was $3,160 Mil.
Total Current Assets was $7,873 Mil.
Total Current Liabilities was $4,044 Mil.

Net Income was 105.736 + 43.412 + -73.253 + -102.173 = $-26 Mil.

Revenue was 1260.361 + 1327.263 + 1376.141 + 1434.657 = $5,398 Mil.
Gross Profit was 914.84 + 967.539 + 986.344 + 1031.836 = $3,901 Mil.
Average Total Assets from the begining of last year (Apr21)
to the end of last year (Apr22) was
(8624.007 + 9113.845 + 9440.883 + 10498.505 + 12799.106) / 5 = $10095.2692 Mil.
Total Assets at the begining of last year (Apr21) was $8,624 Mil.
Long-Term Debt & Capital Lease Obligation was $3,155 Mil.
Total Current Assets was $7,443 Mil.
Total Current Liabilities was $4,781 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 -264. ==> 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 1,495. ==> 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 (Apr22)
	=	-264.44	/	12799.106
	=	-0.02066082

ROA (Last Year)	=	Net Income	/	Total Assets (Apr21)
	=	-26.278	/	8624.007
	=	-0.00304708

Workday's return on assets of this year was -0.02066082. Workday's return on assets of last year was -0.00304708. ==> 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 -264. Workday's current Cash Flow from Operations (TTM) was 1,495. ==> 1,495 > -264 ==> 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: Apr23)	=	Long-Term Debt & Capital Lease Obligation	/	Average Total Assets from Apr22 to Apr23
	=	3159.904	/	13035.4954
	=	0.24240766

Gearing (Last Year: Apr22)	=	Long-Term Debt & Capital Lease Obligation	/	Average Total Assets from Apr21 to Apr22
	=	3155.305	/	10095.2692
	=	0.31255283

Workday's gearing of this year was 0.24240766. Workday's gearing of last year was 0.31255283. ==> This year is lower or equal to last year. ==> Score 1.

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: Apr23)	=	Total Current Assets	/	Total Current Liabilities
	=	7873.093	/	4044.089
	=	1.94681497

Current Ratio (Last Year: Apr22)	=	Total Current Assets	/	Total Current Liabilities
	=	7443.226	/	4781.387
	=	1.55670855

Workday's current ratio of this year was 1.94681497. Workday's current ratio of last year was 1.55670855. ==> 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 261.371. Workday's number of shares in issue last year was 251.743. ==> 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
	=	4735.672	/	6465.473
	=	0.73245561

Gross Margin (Last Year: TTM)	=	Gross Profit	/	Revenue
	=	3900.559	/	5398.422
	=	0.72253688

Workday's gross margin of this year was 0.73245561. Workday's gross margin of last year was 0.72253688. ==> 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 (Apr22)
	=	6465.473	/	12799.106
	=	0.50515036

Asset Turnover (Last Year)	=	Revenue	/	Total Assets at the Beginning of Last Year (Apr21)
	=	5398.422	/	8624.007
	=	0.62597607

Workday's asset turnover of this year was 0.50515036. Workday's asset turnover of last year was 0.62597607. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score

Que. 1

Que. 2

Que. 3

Que. 4

Que. 5

Que. 6

Que. 7

Que. 8

Que. 9

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

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Workday Inc (NAS:WDAY) » Definitions » Piotroski F-Score

Comparable Companies

Traded in Other Exchanges

WDAY:Mexico W7D:Germany W1DA34:Brazil

Address

6110 Stoneridge Mall Road, Pleasanton, CA, USA, 94588

Website

https://www.workday.com

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