Dayforce Inc. (DAY)

Short-term

Turnover ratios

Based on the provided data for Dayforce Inc., we can analyze the activity ratios as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period.
- Dayforce Inc.'s inventory turnover has increased from 0.13 in 2020 to 0.21 in 2023, which indicates that the company is managing its inventory more efficiently over the years.
- However, data for the year 2024 is not available, making it difficult to assess the trend for the latest period.

2. Receivables Turnover:
- Receivables turnover ratio reflects how efficiently a company collects on its credit sales.
- The data provided shows that receivables turnover information is not available, which makes it challenging to evaluate the efficiency of Dayforce Inc. in collecting receivables.

3. Payables Turnover:
- Payables turnover ratio indicates how quickly a company pays off its suppliers.
- The data does not provide information on payables turnover for Dayforce Inc., making it impossible to assess the company's payment practices to its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales.
- Dayforce Inc.'s working capital turnover has fluctuated over the years, with a peak of 3.46 in 2022 and a low of 2.44 in 2023.
- This ratio signifies the company's ability to use its working capital effectively to generate revenue, with some variability in performance.

In conclusion, while the data for some activity ratios such as receivables turnover and payables turnover is missing, the analysis of inventory turnover and working capital turnover suggests that Dayforce Inc. has shown improvements in managing inventory and utilizing working capital efficiently over the years, albeit with some fluctuations in performance.

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Average number of days

Dayforce Inc.'s days of inventory on hand (DOH) has shown a decreasing trend over the years, indicating that the company is efficiently managing its inventory levels. The DOH decreased from 2,737.79 days on December 31, 2020, to 1,761.02 days on December 31, 2023. This suggests that the company is selling its inventory at a faster pace, which can lead to lower carrying costs and potential for higher turnover.

On the other hand, information on days of sales outstanding (DSO) and number of days of payables is not provided for any of the years, which limits the comprehensive analysis of Dayforce Inc.'s activity ratios. DSO and number of days of payables are crucial metrics to assess how efficiently the company is managing its accounts receivable and accounts payable, respectively.

In conclusion, while the decreasing trend in days of inventory on hand is a positive sign, the lack of data on DSO and number of days of payables hinders a complete assessment of Dayforce Inc.'s activity ratios. Monitoring all three ratios together would provide a more holistic view of the company's operational efficiency.

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Long-term

The long-term activity ratios of Dayforce Inc. indicate an improvement in efficiency over the years.

- Fixed Asset Turnover has shown a consistent increase from 6.18 in 2020 to 7.13 in 2022, indicating that the company is generating more revenue from its fixed assets over time. However, there is missing data for 2023 and 2024, so it is essential to assess the reasons behind the lack of data.

- Total Asset Turnover has also displayed a positive trend, increasing from 0.13 in 2020 to 0.19 in 2024. This indicates that the company is utilizing its total assets more efficiently to generate sales.

Overall, the trend in both ratios suggests that Dayforce Inc. has been effectively utilizing its assets to drive revenue growth, thereby enhancing its operational performance over the years.