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Workday (NAS:WDAY) Operating Margin %

: -1.18% (As of Apr. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Workday's Operating Income for the three months ended in Apr. 2023 was $-20 Mil. Workday's Revenue for the three months ended in Apr. 2023 was $1,684 Mil. Therefore, Workday's Operating Margin % for the quarter that ended in Apr. 2023 was -1.18%.

Good Sign:

Workday Inc operating margin is expanding. Margin expansion is usually a good sign.

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

WDAY' s Operating Margin % Range Over the Past 10 Years
Min: -32.69   Med: -15.29   Max: -2.27
Current: -2.62


WDAY's Operating Margin % is ranked worse than
60.14% of 2697 companies
in the Software industry
Industry Median: 2.55 vs WDAY: -2.62

Workday's 5-Year Average Operating Margin % Growth Rate was 32.40% per year.

Workday's Operating Income for the three months ended in Apr. 2023 was $-20 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2023 was $-169 Mil.


Workday Operating Margin % Historical Data

The historical data trend for Workday's Operating 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
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -16.42 -13.85 -5.76 -2.27 -3.57

Workday Quarterly Data
Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23
Operating 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 -5.08 -2.22 -1.65 -5.40 -1.18

Competitive Comparison

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

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

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



Workday Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (A: Jan. 2023 ) / Revenue (A: Jan. 2023 )
=-222.2 / 6215.818
=-3.57 %

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

Operating Margin %=Operating Income (Q: Apr. 2023 ) / Revenue (Q: Apr. 2023 )
=-19.8 / 1684.312
=-1.18 %

* 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.


Workday  (NAS:WDAY) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Workday Operating Margin % Related Terms

Thank you for viewing the detailed overview of Workday's Operating 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

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