Dayforce Inc. (DAY)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Dayforce Inc.

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. Dayforce Inc.'s inventory turnover fluctuated over the years, ranging from 0.11 to 0.19. A higher ratio indicates better inventory management, as goods are sold more quickly. Dayforce Inc. experienced some variation in its inventory turnover, which could be due to changes in sales volume or inventory management practices.

2. Receivables Turnover: Unfortunately, there is no data available for the receivables turnover ratio. This ratio would have provided insights into how efficiently the company collects on its credit sales, but without this data, it is challenging to assess Dayforce Inc.'s performance in this area.

3. Payables Turnover: Similarly, there is no available data for the payables turnover ratio. This ratio would have indicated how quickly the company pays its suppliers, providing insights into its liquidity management and creditor relationships.

4. Working Capital Turnover: The working capital turnover ratio reflects how effectively a company utilizes its working capital to generate sales. Dayforce Inc. had a fluctuating working capital turnover ratio, indicating varying levels of sales generated for each dollar of working capital invested. The company showed some stability over the years, with the ratio ranging between 1.34 and 3.60. Higher ratios suggest more efficient utilization of working capital to generate revenue.

In conclusion, Dayforce Inc. seems to manage its inventory with fluctuating efficiency and utilizes its working capital at varying levels to generate sales. However, without data on receivables and payables turnover ratios, a comprehensive assessment of the company's overall activity efficiency is limited.

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Average number of days

Activity ratios provide insights into how efficiently a company manages its resources in generating sales and collecting payments. Let's analyze the activity ratios of Dayforce Inc. based on the provided data.

1. Days of Inventory on Hand (DOH):
- Dayforce Inc.'s inventory turnover appears to fluctuate significantly over the periods analyzed, ranging from a low of around 1,902 days to a high of over 3,000 days.
- A lower DOH indicates faster inventory turnover, which suggests efficient management of inventory levels. However, the company experienced fluctuations in inventory turnover over the analyzed periods.
- In some periods, such as March 31, 2020, and September 30, 2022, specific data points are missing, making it challenging to assess the trend accurately.

2. Days of Sales Outstanding (DSO):
- The DSO metric, which reflects the average number of days it takes to collect accounts receivable, is not provided for any of the periods for Dayforce Inc.
- Absence of DSO data hinders the assessment of the company's effectiveness in collecting payments from customers promptly. It is essential for evaluating the efficiency of credit management practices.

3. Number of Days of Payables:
- Similar to DSO, details on the number of days of payables are not available for any of the periods for Dayforce Inc.
- Lack of information regarding payables turnover makes it challenging to determine how efficiently the company manages its trade credit agreements with suppliers.
- Evaluating payables turnover is crucial for understanding the company's cash conversion cycle and its relationship with suppliers.

In conclusion, while the Days of Inventory on Hand (DOH) data provides insights into Dayforce Inc.'s inventory management efficiency, the absence of Days of Sales Outstanding (DSO) and Number of Days of Payables data limits a comprehensive analysis of the company's overall activity performance. For a more thorough assessment of Dayforce Inc.'s activity ratios, additional detailed information on DSO and payables turnover would be necessary.

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Long-term

Dayforce Inc.'s long-term activity ratios show an improving trend over the years. The Fixed Asset Turnover ratio, which measures how efficiently the company is using its fixed assets to generate revenue, has been steadily increasing from 5.29 in March 2020 to 7.13 in March 2023 before plateauing at 6.29 in September 2023. This indicates that the company is utilizing its fixed assets more efficiently over time.

In parallel, the Total Asset Turnover ratio, which reflects the company's ability to generate sales from its total assets, has shown fluctuations but generally an upward trend from 0.13 in March 2020 to 0.19 in December 2024. This suggests that Dayforce Inc. has been able to generate more revenue relative to its total assets as time has progressed.

Overall, the upward movement in both the Fixed Asset Turnover and Total Asset Turnover ratios indicates that Dayforce Inc. is managing its assets effectively and efficiently, leading to improved operational performance and potentially higher profitability in the long term.