Dayforce Inc. (DAY)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	867,200	773,000	641,900	501,200	455,900
Inventory	US$ in thousands	0	4,184,000	3,537,700	3,759,400	0
Inventory turnover		—	0.18	0.18	0.13	—

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $867,200K ÷ $0K
= —

The inventory turnover ratio for Dayforce Inc. has been relatively stable over the past few years, consistently ranging between 0.13 and 0.18. This indicates that the company is efficiently managing its inventory by effectively converting its inventory into sales within a given period.

A higher inventory turnover ratio typically signifies that a company is able to sell its inventory quickly, which can help reduce holding costs and potential losses from obsolete inventory. On the other hand, a lower ratio may indicate overstocking, slow-moving inventory, or difficulties in selling products.

Given Dayforce Inc.'s inventory turnover ratios in the range of 0.13 to 0.18, it suggests that the company has been effectively balancing its inventory levels to meet demand without excessive overstocking. Further analysis of trends in sales growth and inventory management practices could provide additional insights into the company's operational efficiency and inventory management strategies.