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 %
-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 %
-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
* 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 NokiaÂ’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 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.
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