Aureus
BGood

Workday, Inc.(WDAY)

B

Financial data as of Jan 31, 2026Improving · Technology

FCF Margin12.0%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 / FCF3.3xElevated debt burden
Current Ratio1.32Adequate short-term liquidity
YoY FCF Growth+30.2%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
+0.5Healthy FCF margin with manageable debt (12.0%, 3.3x)
→
+1Strong YoY FCF growth (30.2% YoY)
→
-0.5Highly volatile FCF (consistency: 0.89)
→
FinalB

Analysis Summary

Strengths

  • Healthy FCF margin (12.0%)
  • Strong YoY FCF growth (+30.2%)

Concerns

  • Net debt position ($2.3B) — 3.3x FCF, manageable
  • Highly volatile quarterly FCF
Cash conversion ratio unavailable or not meaningfulSBC-adjusted FCF used — $1.6B stock-based compensation (59% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin12.0%
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 / FCF3.3xElevated debt burden
Current Ratio1.32Adequate liquidity
Debt / Equity0.49Low leverage

Quarterly FCF Trend

+30.2% YoYImproving (+30.2%)

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 Margin12.0%
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 / FCF3.3x
YoY FCF Growth+30.2%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateJan 31, 2026
GradeB
Data SourceYahoo Finance