Dayforce Inc. (DAY)

Payables 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
Payables	US$ in thousands	66,700	54,300	51,700	38,900	43,200
Payables turnover		13.00	14.24	12.42	12.88	10.55

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $867,200K ÷ $66,700K
= 13.00

The payables turnover ratio measures how efficiently Dayforce Inc. is managing its accounts payable by comparing the company's purchases on credit to its average accounts payable balance.

Over the past five years, Dayforce Inc.'s payables turnover ratio has fluctuated, ranging from 10.55 to 14.24 times. The higher the payables turnover ratio, the shorter the time it takes for the company to pay its suppliers, indicating better liquidity and efficient management of payables.

In 2023, the payables turnover ratio decreased to 13.00 from 14.24 in 2022, suggesting that the company took slightly longer to pay its suppliers compared to the previous year. However, the ratio remained relatively high, indicating effective management of accounts payable and possibly negotiating favorable credit terms with suppliers.

Overall, Dayforce Inc. has demonstrated strong efficiency in managing its payables over the past five years, with fluctuations reflecting variations in the company's purchasing patterns and payment practices.