Dayforce Inc. (DAY)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	920,900	904,200	882,500	883,000	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
Inventory	US$ in thousands	—	—	—	0	5,029,400	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
Inventory turnover		—	—	—	—	0.17	0.17	0.19	0.13	0.18	—	—	—	0.18	0.11	0.18	0.12	0.13	0.18	0.18	0.13

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $920,900K ÷ $—K
= —

Inventory turnover is a crucial financial ratio that indicates how efficiently a company is managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory over a specific period.

Analyzing the inventory turnover of Dayforce Inc. over the past few years reveals fluctuating trends. In March 31, 2020, the inventory turnover was reported at an extremely low level of 0.13, indicating that the company is taking a long time to sell its inventory. However, the ratio increased to 0.18 by June 30, 2020, and remained at the same level at September 30, 2020.

In December 31, 2020, there was a decrease back to 0.13, which suggests a potential issue with inventory management efficiency. This trend continued into March 31, 2021, with a further decline to 0.12. However, there was a significant improvement by June 30, 2021, where the inventory turnover increased to 0.18.

The ratio then dropped to 0.11 by September 30, 2021, indicating a potential slowdown in inventory turnover. Nevertheless, there was a recovery by December 31, 2021, with the ratio back at 0.18. Subsequently, the inventory turnover maintained this level for the next few quarters until March 31, 2023.

In March 31, 2023, the inventory turnover was reported at 0.13, which is relatively stable compared to the previous periods. The ratio slightly increased to 0.19 by June 30, 2023, before decreasing to 0.17 by December 31, 2023.

Unfortunately, data is unavailable for the subsequent years, as indicated by "—." It is essential for Dayforce Inc. to consistently monitor and manage its inventory turnover effectively to ensure optimal utilization of resources and maintain healthy financial performance. A low inventory turnover could lead to excess inventory carrying costs and potential obsolescence, while a high turnover may indicate possible stockouts and missed sales opportunities. Monitoring this ratio over time allows the company to make informed decisions regarding its inventory management strategies.