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Workday (NAS:WDAY) Gross Margin %

: 75.22% (As of Apr. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Workday's Gross Profit for the three months ended in Apr. 2023 was $1,267 Mil. Workday's Revenue for the three months ended in Apr. 2023 was $1,684 Mil. Therefore, Workday's Gross Margin % for the quarter that ended in Apr. 2023 was 75.22%.


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

WDAY' s Gross Margin % Range Over the Past 10 Years
Min: 62.3   Med: 70.52   Max: 73.25
Current: 73.25


During the past 13 years, the highest Gross Margin % of Workday was 73.25%. The lowest was 62.30%. And the median was 70.52%.

WDAY's Gross Margin % is ranked better than
81.06% of 2534 companies
in the Software industry
Industry Median: 42.92 vs WDAY: 73.25

Workday had a gross margin of 75.22% for the quarter that ended in Apr. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Workday was 0.60% per year.


Workday Gross Margin % Historical Data

The historical data trend for Workday's Gross Margin % 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
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 70.41 70.63 72.25 72.21 72.41

Workday Quarterly Data
Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23
Gross Margin % 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 71.92 72.45 72.75 72.45 75.22

Competitive Comparison

For the Software - Application subindustry, Workday's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

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

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



Workday Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Workday's Gross Margin for the fiscal year that ended in Jan. 2023 is calculated as

Gross Margin % (A: Jan. 2023 )=Gross Profit (A: Jan. 2023 ) / Revenue (A: Jan. 2023 )
=4500.6 / 6215.818
=(Revenue - Cost of Goods Sold) / Revenue
=(6215.818 - 1715.178) / 6215.818
=72.41 %

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


Gross Margin % (Q: Apr. 2023 )=Gross Profit (Q: Apr. 2023 ) / Revenue (Q: Apr. 2023 )
=1266.9 / 1684.312
=(Revenue - Cost of Goods Sold) / Revenue
=(1684.312 - 417.444) / 1684.312
=75.22 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Workday  (NAS:WDAY) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Workday had a gross margin of 75.22% for the quarter that ended in Apr. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Workday Gross Margin % Related Terms

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