Aureus
AExcellent

Workday, Inc.(WDAY)

A

Financial data as of Jan 31, 2025Improving · Technology

FCF Margin25.9%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$2.2B
Revenue$8.4B
Net Cash-$1.8BNet debt position
Debt / FCF1.5xManageable debt load
Current Ratio1.90Adequate short-term liquidity
YoY FCF Growth+54.1%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (25.9%, 1.5x)
→
+1Strong YoY FCF growth (54.1% YoY)
→
+1Very low debt-to-FCF ratio (1.5x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (25.9%)
  • Very low debt relative to cash flow (1.5x)
  • Strong YoY FCF growth (+54.1%)
  • FCF trend is improving

Concerns

  • Net debt position ($1.8B)
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin25.9%
Net Margin6.2%
Operating CF Margin29.1%
CapEx Ratio3.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$1.8BNet debt position
Debt / FCF1.5xManageable debt load
Current Ratio1.90Strong liquidity
Debt / Equity0.37Low leverage

Quarterly FCF Trend

+54.1% YoYImproving (+54.1%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameWorkday, Inc.
SectorTechnology
Free Cash Flow$2.2B
Revenue$8.4B
Net Income$526.0M
Operating Cash Flow$2.5B
Capital Expenditure$272.0M
FCF Margin25.9%
Cash Conversion Rate—
Net Margin6.2%
Total Debt$3.4B
Total Cash$1.5B
Net Cash-$1.8B
Current Ratio1.90
Debt / Equity0.37
Debt / FCF1.5x
YoY FCF Growth+54.1%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateJan 31, 2025
GradeA
Data SourceYahoo Finance