Dayforce Inc. (DAY)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	867,200	838,300	817,900	793,100	773,000	750,200	717,700	690,800	641,900	601,000	564,600	520,300	501,200	487,900	473,700	468,000	455,900	440,700	431,800	430,000
Inventory	US$ in thousands	0	5,048,900	4,262,600	6,286,200	4,184,000	—	—	—	3,537,700	5,382,200	3,217,400	4,286,000	3,759,400	2,646,600	2,659,800	3,649,500	0	2,604,000	3,986,700	4,559,700
Inventory turnover		—	0.17	0.19	0.13	0.18	—	—	—	0.18	0.11	0.18	0.12	0.13	0.18	0.18	0.13	—	0.17	0.11	0.09

December 31, 2023 calculation

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

The inventory turnover ratio for Dayforce Inc. has displayed fluctuations over the past five years. The ratio indicates how many times a company sells and replaces its inventory within a specific period.

Analyzing the provided data, the inventory turnover ratio for Dayforce Inc. on Dec 31, 2023, is not available. However, for Sep 30, 2023, the ratio stands at 0.17, indicating that the company sold and replaced its inventory 0.17 times during that quarter. This suggests that the company is managing its inventory effectively, although there may be room for improvement.

Looking at the trend, we observe that the inventory turnover ratios have varied between 0.09 and 0.19 over the past five years. This indicates fluctuations in the efficiency of Dayforce Inc.'s inventory management. A higher inventory turnover ratio generally implies better liquidity and efficient management of inventory, while a lower ratio may indicate excess or obsolete inventory.

Overall, further investigation is needed to understand the factors driving the fluctuations in inventory turnover ratios for Dayforce Inc. It is advisable for the company to monitor its inventory levels closely, optimize its inventory management processes, and ensure alignment between production and sales to enhance efficiency and profitability.