Workday, Inc. — Earnings Quality Grade D
WDAY · Technology
Significant concerns
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 89 days, change +5 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 13.1%, CFFO 19.4%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -40.4% vs revenue 13.1%. Normal
SG&A/Gross Profit = 48.8%. Normal
Gross margin 75.7%, change +0.2pp. Stable
Cash Flow Quality
CFFO/NI = 4.24. Profits backed by cash
FCF $2.8B, FCF/NI = 4.01
Accruals ratio = -12.4%. Low accruals
Cash $5.4B covers debt $3.8B
Balance Sheet Health
Goodwill+Intangibles $5.9B = 76% of equity. Over 50%
Debt/EBITDA = 2.6x. Healthy
Other assets grew 179.2% vs revenue 13.1%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 53% YoY
Manipulation Score
M-Score = -2.78 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08