Dayforce Inc. (DAY)

Short-term

Turnover ratios

Based on the activity ratios of Dayforce Inc., we can observe the following trends:

1. Inventory Turnover:
- The inventory turnover ratio fluctuates over the periods provided, indicating variability in how efficiently Dayforce Inc. is managing its inventory. A lower ratio signifies slower inventory turnover, which may indicate overstocking or slow sales relative to inventory levels.

2. Receivables Turnover:
- The receivables turnover ratio also varies across time periods, suggesting changes in the company's ability to collect outstanding receivables efficiently. A higher ratio indicates that Dayforce Inc. is collecting its accounts receivable more frequently.

3. Payables Turnover:
- The payables turnover ratio demonstrates the speed at which Dayforce Inc. pays its suppliers. The ratios are relatively stable over the periods, with some fluctuations, suggesting consistency in the company's payment practices.

4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively Dayforce Inc. is utilizing its working capital to generate sales revenue. The ratio fluctuates, indicating variations in the efficiency of working capital utilization over time.

Overall, by analyzing these activity ratios, we can gain insights into Dayforce Inc.'s inventory management, receivables collection efficiency, payment practices to suppliers, and the effectiveness of utilizing working capital to drive sales. These ratios provide valuable indications of operational efficiency and financial performance over the periods analyzed.

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Average number of days

Based on the activity ratios provided for Dayforce Inc., we can observe the following trends:

1. Days of Inventory on Hand (DOH): The trend in the days of inventory on hand fluctuates significantly over the periods analyzed. There is inconsistency in managing inventory levels efficiently, as seen in the wide range of days, from as low as 1,902.25 days to as high as 3,870.44 days. A lower DOH indicates faster inventory turnover and better liquidity, while a higher DOH suggests potential inventory management issues or overstocking.

2. Days of Sales Outstanding (DSO): The data does not provide consistent information on days of sales outstanding, with many periods missing. However, in the available data, DSO ranges from 37.25 days to 56.52 days. A lower DSO is preferable as it indicates faster collection of accounts receivable and improved cash flow management.

3. Number of Days of Payables: The trend in the number of days of payables also varies across the periods reviewed. The range of days extends from 19.90 days to 34.59 days. A lower number of days of payables indicates quicker payment to suppliers, while a higher number may signal potential challenges in managing accounts payable effectively.

Overall, Dayforce Inc. should focus on optimizing its inventory management, accounts receivable collection processes, and accounts payable practices to enhance operational efficiency, cash flow, and working capital management. Regular monitoring and improvement in these activity ratios can lead to better financial performance and sustainability for the company.

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Long-term

Dayforce Inc.'s fixed asset turnover ratio has been relatively stable over the past few years, with a range between 6.24 and 8.24. This indicates that the company generates between 6.24 to 8.24 times in sales for every dollar invested in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio is generally desirable as it shows that the company is efficiently utilizing its fixed assets to generate revenue.

In contrast, Dayforce Inc.'s total asset turnover ratio has varied widely, ranging from 0.10 to 0.17. This ratio reflects how efficiently the company is using all its assets to generate sales. A lower total asset turnover ratio may suggest that the company is not effectively utilizing its total assets to generate revenue compared to its fixed assets alone.

Overall, Dayforce Inc. shows relatively strong efficiency in utilizing its fixed assets to generate sales, but there may be room for improvement in optimizing the utilization of its total assets. Comparing the fixed asset turnover ratio to the total asset turnover ratio provides valuable insights into the company's operational efficiency and asset management strategies over time.