Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Workday Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Goodwill	3,478)	2,846)	2,840)	2,840)	1,820)	1,819)
Developed technology	473)	318)	343)	346)	218)	218)
Customer relationships	362)	311)	311)	311)	223)	224)
Backlog	15)	15)	15)	15)	11)	11)
Trade name	14)	13)	13)	13)	12)	12)
Acquisition-related intangible assets, gross	864)	657)	681)	685)	464)	466)
Accumulated amortization	(503)	(424)	(376)	(294)	(216)	(157)
Acquisition-related intangible assets, net	361)	233)	305)	391)	249)	308)
Goodwill and acquisition-related intangible assets	3,839)	3,079)	3,146)	3,231)	2,068)	2,128)

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Workday Inc. goodwill increased from 2023 to 2024 and from 2024 to 2025.
Acquisition-related intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Workday Inc. acquisition-related intangible assets, net decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.
Goodwill and acquisition-related intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Workday Inc. goodwill and acquisition-related intangible assets decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.

Workday Inc., adjustments to financial statements

US$ in millions

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Adjustment to Total Assets
Total assets (as reported)	17,977)	16,452)	13,486)	10,499)	8,718)	6,816)
Less: Goodwill	3,478)	2,846)	2,840)	2,840)	1,820)	1,819)
Total assets (adjusted)	14,499)	13,606)	10,646)	7,658)	6,899)	4,997)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	9,034)	8,082)	5,586)	4,535)	3,278)	2,487)
Less: Goodwill	3,478)	2,846)	2,840)	2,840)	1,820)	1,819)
Stockholders’ equity (adjusted)	5,556)	5,236)	2,746)	1,695)	1,458)	667)

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

Workday Inc., Financial Data: Reported vs. Adjusted

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Workday Inc., adjusted financial ratios

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Total Asset Turnover
Reported total asset turnover	0.47	0.44	0.46	0.49	0.50	0.53
Adjusted total asset turnover	0.58	0.53	0.58	0.67	0.63	0.73
Financial Leverage
Reported financial leverage	1.99	2.04	2.41	2.31	2.66	2.74
Adjusted financial leverage	2.61	2.60	3.88	4.52	4.73	7.49
Return on Equity (ROE)
Reported ROE	5.82%	17.09%	-6.57%	0.65%	-8.62%	-19.33%
Adjusted ROE	9.47%	26.38%	-13.36%	1.73%	-19.37%	-72.03%
Return on Assets (ROA)
Reported ROA	2.93%	8.39%	-2.72%	0.28%	-3.24%	-7.05%
Adjusted ROA	3.63%	10.15%	-3.44%	0.38%	-4.09%	-9.62%

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Workday Inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 not reaching 2023 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Workday Inc. adjusted financial leverage ratio decreased from 2023 to 2024 but then slightly increased from 2024 to 2025.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Workday Inc. adjusted ROE improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Workday Inc. adjusted ROA improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.

Workday Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues	8,446)	7,259)	6,216)	5,139)	4,318)	3,627)
Total assets	17,977)	16,452)	13,486)	10,499)	8,718)	6,816)
Activity Ratio
Total asset turnover¹	0.47	0.44	0.46	0.49	0.50	0.53
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	8,446)	7,259)	6,216)	5,139)	4,318)	3,627)
Adjusted total assets	14,499)	13,606)	10,646)	7,658)	6,899)	4,997)
Activity Ratio
Adjusted total asset turnover²	0.58	0.53	0.58	0.67	0.63	0.73

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

2025 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 8,446 ÷ 17,977 = 0.47

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 8,446 ÷ 14,499 = 0.58

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Workday Inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 not reaching 2023 level.

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	17,977)	16,452)	13,486)	10,499)	8,718)	6,816)
Stockholders’ equity	9,034)	8,082)	5,586)	4,535)	3,278)	2,487)
Solvency Ratio
Financial leverage¹	1.99	2.04	2.41	2.31	2.66	2.74
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	14,499)	13,606)	10,646)	7,658)	6,899)	4,997)
Adjusted stockholders’ equity	5,556)	5,236)	2,746)	1,695)	1,458)	667)
Solvency Ratio
Adjusted financial leverage²	2.61	2.60	3.88	4.52	4.73	7.49

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

2025 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 17,977 ÷ 9,034 = 1.99

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 14,499 ÷ 5,556 = 2.61

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Workday Inc. adjusted financial leverage ratio decreased from 2023 to 2024 but then slightly increased from 2024 to 2025.

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	526)	1,381)	(367)	29)	(282)	(481)
Stockholders’ equity	9,034)	8,082)	5,586)	4,535)	3,278)	2,487)
Profitability Ratio
ROE¹	5.82%	17.09%	-6.57%	0.65%	-8.62%	-19.33%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss)	526)	1,381)	(367)	29)	(282)	(481)
Adjusted stockholders’ equity	5,556)	5,236)	2,746)	1,695)	1,458)	667)
Profitability Ratio
Adjusted ROE²	9.47%	26.38%	-13.36%	1.73%	-19.37%	-72.03%

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

2025 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 526 ÷ 9,034 = 5.82%

² Adjusted ROE = 100 × Net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 526 ÷ 5,556 = 9.47%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Workday Inc. adjusted ROE improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	526)	1,381)	(367)	29)	(282)	(481)
Total assets	17,977)	16,452)	13,486)	10,499)	8,718)	6,816)
Profitability Ratio
ROA¹	2.93%	8.39%	-2.72%	0.28%	-3.24%	-7.05%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss)	526)	1,381)	(367)	29)	(282)	(481)
Adjusted total assets	14,499)	13,606)	10,646)	7,658)	6,899)	4,997)
Profitability Ratio
Adjusted ROA²	3.63%	10.15%	-3.44%	0.38%	-4.09%	-9.62%

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

2025 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 526 ÷ 17,977 = 2.93%

² Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 526 ÷ 14,499 = 3.63%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Workday Inc. adjusted ROA improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.

Workday Inc. (NASDAQ:WDAY)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Workday Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Workday Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)