Dayforce Inc. (DAY)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,513,700	1,246,200	1,024,200	842,500	824,100
Property, plant and equipment	US$ in thousands	210,100	174,900	128,200	136,400	128,300
Fixed asset turnover		7.20	7.13	7.99	6.18	6.42

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,513,700K ÷ $210,100K
= 7.20

Fixed asset turnover is a financial ratio that measures how efficiently a company is generating sales from its fixed assets. The formula for fixed asset turnover is total revenue divided by average fixed assets.

Looking at the data provided for Dayforce Inc., we observe fluctuations in the fixed asset turnover ratio over the past five years. In 2023, the fixed asset turnover ratio was 7.20, which indicates that Dayforce Inc. generated $7.20 in revenue for every dollar invested in fixed assets during that year. This ratio increased compared to the previous year, reflecting improved efficiency in utilizing fixed assets to generate sales.

In 2022, the fixed asset turnover ratio was 7.13, slightly lower than 2023 but still relatively high, indicating efficient asset utilization. The ratio peaked at 7.99 in 2021, suggesting that the company was very effective in generating sales from its fixed assets that year.

On the other hand, the ratio was lower in 2020 and 2019, at 6.18 and 6.42, respectively. This implies that Dayforce Inc. was less efficient in utilizing its fixed assets to generate revenue during those years.

Overall, the trend in Dayforce Inc.'s fixed asset turnover ratio indicates fluctuations in asset efficiency over the past five years, with some years showing higher efficiency than others. It is crucial for the company to analyze the factors contributing to these fluctuations to maintain and improve asset utilization efficiency in the future.