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.
Peer comparison
Dec 31, 2023