Workday Inc. (NASDAQ:WDAY)

Current Ratio

The current ratio shows a generally upward trend over the analyzed period, beginning at 1.09 in April 2019 and increasing to values above 2.0 in several recent quarters. There are fluctuations within this trend, with some quarters showing dips, such as July 2019 (0.81) and April 2021 (0.93), yet the overall pattern indicates an improvement in short-term liquidity and the company's ability to cover current liabilities with current assets. The ratio peaks around October 2022 at 1.87 and reaches up to 2.13 by October 2023, suggesting enhanced financial stability.

Quick Ratio

The quick ratio follows a similar pattern to the current ratio, starting at 1.00 in April 2019 and generally rising throughout the period. It exhibits declines in some quarters, notably July 2019 (0.74) and April 2021 (0.86), but recovers afterwards to surpass 1.90 in multiple recent quarters. The highest point is approximately 2.01 in January 2024, indicating an increased ability to meet short-term obligations without relying on inventory. This trend aligns with improved liquidity, reflecting efficient management of liquid assets.

Cash Ratio

The cash ratio increased from 0.77 in April 2019 to consistently above 1.50 in recent quarters, reaching peaks of 1.71 in January 2024 and 1.65 in April 2025. Despite some volatility and occasional declines (e.g., July 2019 at 0.56 and January 2022 at 0.72), the overall trajectory is upward, demonstrating a growing cash reserve base relative to current liabilities. This suggests a strong liquidity position with substantial cash and cash equivalents to cover short-term debts.

The analysis of the quarterly data reveals notable fluctuations and overall trends in current assets, current liabilities, and the current ratio over the examined periods.

Current Assets

Current assets generally display a growth trajectory with some variability. Starting at 2,665 million US dollars in April 2019, current assets rose steadily to a peak of 10,545 million US dollars in January 2025. The data show consistent increases in most quarters, with occasional dips such as the decline observed between July 2022 (7,805 million) and October 2022 (6,970 million), and again from April 2023 (7,873 million) to October 2023 (8,574 million to 8,574 million exact value constant), suggesting some short-term variations in asset liquidity or composition. Overall, the upward trend suggests improving liquidity and potentially increased investment in current assets over the time frame.

Current Liabilities

Current liabilities exhibit more volatility compared to assets. Starting from 2,443 million US dollars in April 2019, liabilities increased sharply in the second quarter of 2019 to 3,434 million, then fluctuated quarter-to-quarter without a clear long-term upward or downward trend. Notably, liabilities peaked at 5,548 million in January 2025. Several periods show significant changes, for example from October 2020 (3,625 million) to January 2021 (4,283 million) and again in January 2025. This variation may reflect changes in short-term obligations, operational demands, or working capital management strategies.

Current Ratio

The current ratio shows periods of both strength and weakness but indicates an overall improvement in short-term liquidity over time. Initially, the ratio falls below 1 at 0.81 in July 2019, indicating potential liquidity concerns during that quarter. Subsequently, most quarters exhibit ratios above 1, with a gradual upward trend evident from mid-2021 onward, reaching around 2.07 by April 2025. This suggests that the company increasingly holds twice as many current assets as current liabilities, which typically signals a stronger liquidity position and reduced risk of short-term financial distress. Short-term fluctuations are present, but the general rising trend in the current ratio points toward enhanced financial stability and more efficient working capital management in recent periods.

In summary, the data suggest the company has generally strengthened its liquidity position over the analyzed periods. Current assets have steadily increased, while current liabilities show fluctuations but no persistent deterioration. The current ratio confirms improved liquidity and working capital health, indicating the company is better positioned to meet its short-term obligations as of the most recent quarters.

The analysis of the quarterly financial data reveals several important trends in liquidity management as measured by total quick assets, current liabilities, and the quick ratio over the examined periods.

Total Quick Assets

Total quick assets exhibit a generally upward trend over the series, increasing from $2,435 million in April 2019 to $9,333 million by April 2025. Notably, there are periods of rapid growth such as between January 2022 ($4,887 million) and April 2023 ($7,691 million), followed by some fluctuations. Despite occasional decreases, the overall trajectory is one of significant growth, suggesting an expanding liquid asset base.

Current Liabilities

Current liabilities demonstrate a less consistent pattern compared to quick assets. Starting at $2,443 million in April 2019, liabilities rise sharply in mid-2019, reaching peaks over $5,000 million in some quarters, for example, January 2024 ($5,548 million). There are some declines and fluctuations throughout the time frame, such as a notable drop from April 2022 ($4,781 million) to October 2022 ($3,723 million), followed by increases again in subsequent quarters. This volatility reflects changing short-term obligations or operational conditions.

Quick Ratio

The quick ratio, representing the relationship between quick assets and current liabilities, fluctuates notably in the early periods but shows a marked improvement starting from 2021. Early ratios fluctuate around or below 1.0, indicating periods where liquid assets were less than or roughly equal to current liabilities, implying potential liquidity risks. From early 2022 onwards, the quick ratio consistently stays well above 1.0 and even reaches peaks above 2.0 in late 2023 and early 2024, reflecting a strong liquidity position. Towards the most recent quarters, the quick ratio slightly declines but remains comfortably above 1.8, showing maintained liquidity strength.

Overall, the data indicates effective liquidity enhancement over the period analyzed, with the company increasing its quick assets substantially and improving its quick ratio. This trend suggests improved ability to meet short-term obligations with readily available assets, although the oscillations in current liabilities underline the importance of ongoing monitoring of short-term debts and operational cash flows.

Total Cash Assets

The total cash assets show a generally upward trend over the observed periods. Starting at 1,892 million US dollars in April 2019, the value fluctuates but steadily increases overall, reaching a peak of 7,813 million US dollars in January 2024. There is a noticeable surge beginning in early 2022, with cash assets rising from 3,644 million to over 7,800 million within two years. Slight decreases are observed in some quarters, such as between July 2022 and October 2022, and again from January 2024 to April 2024, indicating periods of cash utilization or investment. Nonetheless, the long-term pattern indicates strong cash accumulation.

Current Liabilities

Current liabilities display significant variability across the periods without a clear sustained upward or downward trajectory. Starting at 2,443 million US dollars in April 2019, liabilities increase and drop irregularly, peaking at 5,068 million in January 2022. Subsequent periods show a decreasing trend until October 2022, followed by a rise and fluctuation around the 4,000 to 5,500 million range. The volatility suggests active management of liabilities or varying operational financing needs. Despite fluctuations, liabilities remain consistently above 2,000 million throughout the timeline, indicating a considerable and steady level of short-term obligations.

Cash Ratio

The cash ratio demonstrates improvement and strengthening liquidity over time. Initially, the ratio is below 1.0 in most early quarters, starting at 0.77 in April 2019 and experiencing a low of 0.56 in July 2019. From 2020 onwards, the cash ratio rises, surpassing 1.0 during several quarters signifying sufficient cash relative to current liabilities. Notably, from early 2022, the ratio consistently stays above 1.3 and reaches peaks around 1.7 to 1.71, reflecting a robust liquidity position with cash assets exceeding current liabilities significantly. The ratio does show minor decreases in a few quarters but remains well above 1.0, confirming enhanced financial stability in terms of short-term liquidity.

Summary

Overall, the data reveals a strengthening liquidity position characterized by increasing total cash assets and an improving cash ratio throughout the period. While current liabilities fluctuate, the steady increase in cash assets relative to liabilities results in improved capability to cover short-term obligations. The elevated cash ratio in the latest periods indicates prudent cash management and suggests a comfortable liquidity buffer, supporting operational flexibility and financial resilience.