Dayforce Inc. (DAY)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,760,000 | 1,513,700 | 1,246,200 | 1,024,200 | 842,500 |
| Total current assets | US$ in thousands | 982,000 | 5,955,200 | 4,894,000 | 4,144,100 | 4,122,600 |
| Total current liabilities | US$ in thousands | 290,600 | 5,334,900 | 4,533,500 | 3,741,900 | 3,863,900 |
| Working capital turnover | 2.55 | 2.44 | 3.46 | 2.55 | 3.26 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,760,000K ÷ ($982,000K – $290,600K)
= 2.55
Dayforce Inc.'s working capital turnover has varied over the past five years. In 2020, the ratio stood at 3.26, indicating that the company generated $3.26 in revenue for every dollar of working capital invested during that period. The ratio decreased to 2.55 in 2021, suggesting a decline in efficiency in utilizing working capital.
However, there was an improvement in 2022, with the ratio rising to 3.46, which may signify better management of working capital and increased revenue generation. Subsequently, in 2023, the ratio dropped to 2.44, potentially indicating challenges in efficiently utilizing working capital to drive sales.
In the most recent year, 2024, the ratio remained consistent with the previous year at 2.55, which suggests that Dayforce Inc. continues to generate revenue in line with the amount of working capital invested. Overall, fluctuations in the working capital turnover ratio reflect changes in the company's ability to effectively utilize its working capital to generate sales revenue. Further analysis of trends and underlying factors influencing this ratio would be needed to provide a more comprehensive assessment of Dayforce Inc.'s working capital management efficiency.
Peer comparison
Dec 31, 2024