Dayforce Inc. (DAY)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,760,000 | 1,694,500 | 1,632,000 | 1,574,600 | 1,513,700 | 1,450,100 | 1,388,200 | 1,323,500 | 1,246,200 | 1,192,200 | 1,133,800 | 1,083,000 | 1,024,200 | 964,900 | 912,100 | 854,300 | 842,500 | 841,500 | 839,400 | 843,100 |
| Total current assets | US$ in thousands | 982,000 | 4,903,900 | 5,836,600 | 7,555,400 | 5,955,200 | 5,914,600 | 5,067,200 | 7,041,700 | 4,894,000 | 5,007,200 | 6,037,500 | 7,978,000 | 4,144,100 | 5,963,600 | 3,755,700 | 4,832,200 | 4,122,600 | 3,371,300 | 3,350,000 | 4,056,500 |
| Total current liabilities | US$ in thousands | 290,600 | 4,277,900 | 5,280,300 | 7,049,000 | 5,334,900 | 5,411,500 | 4,604,200 | 6,591,400 | 4,533,500 | 4,675,700 | 5,699,200 | 7,628,900 | 3,741,900 | 5,554,800 | 3,374,000 | 4,420,500 | 3,863,900 | 2,741,400 | 2,744,500 | 3,752,700 |
| Working capital turnover | 2.55 | 2.71 | 2.93 | 3.11 | 2.44 | 2.88 | 3.00 | 2.94 | 3.46 | 3.60 | 3.35 | 3.10 | 2.55 | 2.36 | 2.39 | 2.08 | 3.26 | 1.34 | 1.39 | 2.78 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,760,000K ÷ ($982,000K – $290,600K)
= 2.55
Dayforce Inc.'s working capital turnover ratio has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The ratio measures how effectively the company is utilizing its working capital to generate sales revenue.
Initially, the working capital turnover was relatively high at 2.78 on March 31, 2020, indicating efficient utilization of working capital to generate sales. However, in the following quarters, the ratio decreased to 1.39 on June 30, 2020, and further to 1.34 on September 30, 2020, suggesting a decline in efficiency in converting working capital into sales.
Subsequently, there was a notable improvement as the ratio increased to 3.26 on December 31, 2020, indicating a better utilization of working capital. The trend continued to fluctuate over the next few quarters ranging between 2.08 and 2.55, indicating varying levels of efficiency in working capital management.
From March 31, 2022, the working capital turnover ratio showed an increasing trend, reaching its peak at 3.60 on September 30, 2022, and maintaining relatively high levels till June 30, 2024. This suggests an improvement in the company's ability to generate sales revenue from its working capital during this period.
Overall, the fluctuating trend in Dayforce Inc.'s working capital turnover ratio indicates varying levels of efficiency in managing working capital to generate sales revenue over the analyzed period. Investors and analysts may further investigate the underlying factors influencing these fluctuations to assess the company's operational performance and financial health.
Peer comparison
Dec 31, 2024