Dayforce Inc. (DAY)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,513,700	1,246,200	1,024,200	842,500	824,100
Total current assets	US$ in thousands	5,955,200	5,440,300	4,144,100	4,122,600	3,623,700
Total current liabilities	US$ in thousands	5,334,900	5,079,800	3,741,900	3,863,900	3,371,700
Working capital turnover		2.44	3.46	2.55	3.26	3.27

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,513,700K ÷ ($5,955,200K – $5,334,900K)
= 2.44

Dayforce Inc.'s working capital turnover ratio has shown some variation over the past five years. The company's working capital turnover was 2.44 in 2023, indicating that for every dollar of working capital, Dayforce generated $2.44 in revenue during the year. This represents a decrease compared to the previous year, suggesting a potential inefficiency in utilizing its working capital.

In 2022, the working capital turnover ratio was 3.46, signifying an improvement in the efficiency of utilizing working capital to generate revenue. This was higher compared to the ratios in 2021 and 2023, showcasing a peak in operational efficiency during that year.

In 2021, the ratio decreased to 2.55, indicating a decrease in the company's ability to generate revenue from its working capital compared to the previous year. However, this was still higher than the ratio in 2020, which stood at 3.26. This suggests a potential inefficiency in working capital management during 2021 compared to 2020.

In 2020 and 2019, the ratios were 3.26 and 3.27 respectively, showing a relatively consistent level of efficiency in utilizing working capital to generate revenue during those years.

Overall, fluctuations in Dayforce Inc.'s working capital turnover ratio over the five-year period indicate varying degrees of efficiency in managing working capital to generate revenue. It is important for the company to closely monitor and optimize its working capital management practices to ensure sustainable operational efficiency and profitability.