Aureus
AExcellent

Workday, Inc.(WDAY)

A

Financial data as of Jan 31, 2026Improving · Technology

FCF Margin29.1%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$2.8B
Revenue$9.6B
Net Cash-$2.3BNet debt position
Debt / FCF1.4xManageable debt load
Current Ratio1.32Adequate short-term liquidity
YoY FCF Growth+18.7%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 (29.1%, 1.4x)
→
+1Strong YoY FCF growth (18.7% YoY)
→
+1Very low debt-to-FCF ratio (1.4x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (29.1%)
  • Very low debt relative to cash flow (1.4x)
  • FCF trend is improving

Concerns

  • Net debt position ($2.3B) — 1.4x FCF, manageable
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin29.1%
Net Margin7.3%
Operating CF Margin30.8%
CapEx Ratio1.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$2.3BNet debt position
Debt / FCF1.4xManageable debt load
Current Ratio1.32Adequate liquidity
Debt / Equity0.49Low leverage

Quarterly FCF Trend

+18.7% YoYImproving (+18.7%)

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$2.8B
Revenue$9.6B
Net Income$693.0M
Operating Cash Flow$2.9B
Capital Expenditure$162.0M
FCF Margin29.1%
Cash Conversion Rate—
Net Margin7.3%
Total Debt$3.8B
Total Cash$1.5B
Net Cash-$2.3B
Current Ratio1.32
Debt / Equity0.49
Debt / FCF1.4x
YoY FCF Growth+18.7%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateJan 31, 2026
GradeA
Data SourceYahoo Finance