Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Workday Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Federal	12)	2)	—)	—)	—)	—)
State	45)	19)	14)	1)	2)	—)
Foreign	23)	14)	97)	7)	9)	8)
Current	80)	35)	111)	8)	11)	8)
Federal	52)	(855)	1)	(2)	—)	(1)
State	(20)	(207)	1)	(1)	—)	(2)
Foreign	—)	2)	(6)	(19)	(3)	(7)
Deferred	32)	(1,060)	(4)	(21)	(3)	(10)
Provision for (benefit from) income taxes	112)	(1,025)	107)	(13)	7)	(2)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Workday Inc. current decreased from 2023 to 2024 but then increased from 2024 to 2025 not reaching 2023 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Workday Inc. deferred decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.
Provision for (benefit from) income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Workday Inc. provision for (benefit from) income taxes decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.

Workday Inc., effective income tax rate (EITR) reconciliation

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
Foreign income at other than U.S. rates	0.20%	10.90%	-44.70%	321.00%	-13.10%	-11.20%
Intercompany transactions	-1.00%	-4.30%	3.50%	-158.20%	1.00%	4.60%
Research tax credits	-15.40%	-26.30%	26.50%	-447.70%	26.60%	13.10%
State taxes, net of federal benefit	3.10%	5.10%	-4.70%	-0.70%	-0.50%	-0.10%
Changes in valuation allowance	0.00%	-315.50%	-14.90%	558.50%	-56.30%	-48.30%
Share-based compensation	8.10%	19.10%	-26.50%	-365.40%	19.00%	21.60%
Permanent difference	1.60%	1.20%	-0.90%	4.60%	-0.30%	-0.70%
Nontaxable gain on investment	0.00%	0.00%	0.00%	-15.70%	0.00%	0.90%
Other	-0.10%	1.20%	-0.40%	1.00%	-0.10%	-0.50%
Effective income tax rate	17.50%	-287.60%	-41.10%	-81.60%	-2.70%	0.40%

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
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Workday Inc. effective income tax rate decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.

Workday Inc., components of deferred tax assets and liabilities

US$ in millions

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Tax attributes carryforward	1,290)	1,431)	1,575)	1,790)	1,537)	1,361)
Capitalized research and development expense	621)	367)	255)	—)	—)	—)
Intangibles	429)	483)	503)	423)	484)	489)
Operating lease liabilities	81)	69)	63)	61)	106)	74)
Share-based compensation	76)	69)	75)	71)	78)	72)
Other reserves and accruals	65)	47)	60)	29)	23)	21)
Property and equipment	—)	—)	30)	24)	13)	11)
Other	37)	32)	38)	56)	58)	33)
Deferred tax assets	2,599)	2,498)	2,600)	2,454)	2,298)	2,060)
Valuation allowance	(1,259)	(1,182)	(2,358)	(2,243)	(2,084)	(1,904)
Deferred tax assets, net of valuation allowance	1,340)	1,316)	242)	211)	214)	156)
Deferred commissions	(162)	(145)	(127)	(103)	(81)	(61)
Operating lease right-of-use assets	(71)	(62)	(57)	(57)	(101)	(68)
Property and equipment	(30)	(13)	—)	—)	—)	—)
Other	(45)	(33)	(47)	(44)	(23)	(21)
Deferred tax liabilities	(308)	(253)	(231)	(204)	(205)	(150)
Net deferred tax assets (liabilities)	1,032)	1,063)	11)	8)	9)	6)

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
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Workday Inc. deferred tax assets decreased from 2023 to 2024 but then increased from 2024 to 2025 not reaching 2023 level.
Deferred tax assets, net of valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Workday Inc. deferred tax assets, net of valuation allowance increased from 2023 to 2024 and from 2024 to 2025.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Workday Inc. net deferred tax assets (liabilities) increased from 2023 to 2024 but then slightly decreased from 2024 to 2025.

Workday Inc., deferred tax assets and liabilities, classification

US$ in millions

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
	Deferred tax assets	1,039)	1,065)	13)	12)	10)	7)
	Deferred tax liabilities (included in Other liabilities)	7)	2)	2)	4)	1)	1)

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
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Workday Inc. deferred tax assets increased from 2023 to 2024 but then slightly decreased from 2024 to 2025.
Deferred tax liabilities (included in Other liabilities)	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Workday Inc. deferred tax liabilities (included in Other liabilities) increased from 2023 to 2024 and from 2024 to 2025.

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: Noncurrent deferred tax assets, net	1,039)	1,065)	13)	12)	10)	7)
Total assets (adjusted)	16,938)	15,387)	13,474)	10,487)	8,708)	6,809)
Adjustment to Total Liabilities
Total liabilities (as reported)	8,943)	8,370)	7,901)	5,963)	5,441)	4,330)
Less: Noncurrent deferred tax liabilities, net	7)	2)	2)	4)	1)	1)
Total liabilities (adjusted)	8,936)	8,368)	7,899)	5,959)	5,440)	4,329)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	9,034)	8,082)	5,586)	4,535)	3,278)	2,487)
Less: Net deferred tax assets (liabilities)	1,032)	1,063)	11)	8)	9)	6)
Stockholders’ equity (adjusted)	8,002)	7,019)	5,574)	4,528)	3,268)	2,481)
Adjustment to Net Income (loss)
Net income (loss) (as reported)	526)	1,381)	(367)	29)	(282)	(481)
Add: Deferred income tax expense (benefit)	32)	(1,060)	(4)	(21)	(3)	(10)
Net income (loss) (adjusted)	558)	321)	(371)	8)	(286)	(491)

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
Net Profit Margin
Reported net profit margin	6.23%	19.02%	-5.90%	0.57%	-6.54%	-13.25%
Adjusted net profit margin	6.61%	4.42%	-5.97%	0.16%	-6.62%	-13.53%
Total Asset Turnover
Reported total asset turnover	0.47	0.44	0.46	0.49	0.50	0.53
Adjusted total asset turnover	0.50	0.47	0.46	0.49	0.50	0.53
Financial Leverage
Reported financial leverage	1.99	2.04	2.41	2.31	2.66	2.74
Adjusted financial leverage	2.12	2.19	2.42	2.32	2.66	2.75
Return on Equity (ROE)
Reported ROE	5.82%	17.09%	-6.57%	0.65%	-8.62%	-19.33%
Adjusted ROE	6.97%	4.57%	-6.66%	0.18%	-8.75%	-19.78%
Return on Assets (ROA)
Reported ROA	2.93%	8.39%	-2.72%	0.28%	-3.24%	-7.05%
Adjusted ROA	3.29%	2.09%	-2.75%	0.08%	-3.28%	-7.20%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Workday Inc. adjusted net profit margin ratio improved from 2023 to 2024 and from 2024 to 2025.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Workday Inc. adjusted total asset turnover ratio improved from 2023 to 2024 and from 2024 to 2025.
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 and from 2024 to 2025.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Workday Inc. adjusted ROE improved from 2023 to 2024 and from 2024 to 2025.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Workday Inc. adjusted ROA improved from 2023 to 2024 and 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)
Net income (loss)	526)	1,381)	(367)	29)	(282)	(481)
Revenues	8,446)	7,259)	6,216)	5,139)	4,318)	3,627)
Profitability Ratio
Net profit margin¹	6.23%	19.02%	-5.90%	0.57%	-6.54%	-13.25%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss)	558)	321)	(371)	8)	(286)	(491)
Revenues	8,446)	7,259)	6,216)	5,139)	4,318)	3,627)
Profitability Ratio
Adjusted net profit margin²	6.61%	4.42%	-5.97%	0.16%	-6.62%	-13.53%

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 Net profit margin = 100 × Net income (loss) ÷ Revenues
= 100 × 526 ÷ 8,446 = 6.23%

² Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenues
= 100 × 558 ÷ 8,446 = 6.61%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Workday Inc. adjusted net profit margin ratio improved from 2023 to 2024 and 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues	8,446)	7,259)	6,216)	5,139)	4,318)	3,627)
Adjusted total assets	16,938)	15,387)	13,474)	10,487)	8,708)	6,809)
Activity Ratio
Adjusted total asset turnover²	0.50	0.47	0.46	0.49	0.50	0.53

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 ÷ 16,938 = 0.50

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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 improved from 2023 to 2024 and 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	16,938)	15,387)	13,474)	10,487)	8,708)	6,809)
Adjusted stockholders’ equity	8,002)	7,019)	5,574)	4,528)	3,268)	2,481)
Solvency Ratio
Adjusted financial leverage²	2.12	2.19	2.42	2.32	2.66	2.75

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
= 16,938 ÷ 8,002 = 2.12

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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 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss)	558)	321)	(371)	8)	(286)	(491)
Adjusted stockholders’ equity	8,002)	7,019)	5,574)	4,528)	3,268)	2,481)
Profitability Ratio
Adjusted ROE²	6.97%	4.57%	-6.66%	0.18%	-8.75%	-19.78%

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 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 558 ÷ 8,002 = 6.97%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Workday Inc. adjusted ROE improved from 2023 to 2024 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss)	558)	321)	(371)	8)	(286)	(491)
Adjusted total assets	16,938)	15,387)	13,474)	10,487)	8,708)	6,809)
Profitability Ratio
Adjusted ROA²	3.29%	2.09%	-2.75%	0.08%	-3.28%	-7.20%

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 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 558 ÷ 16,938 = 3.29%

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

Workday Inc. (NASDAQ:WDAY)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Workday Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Workday Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)