Dayforce Inc. (DAY)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 1,761.02 | 1,975.63 | 2,011.62 | 2,737.79 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 1,761.02 | 1,975.63 | 2,011.62 | 2,737.79 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Dayforce Inc. has shown a significant improvement over the years, reflecting the company's efficiency in managing its working capital. As of December 31, 2020, the cash conversion cycle stood at 2,737.79 days, indicating a relatively long period for the company to convert its investments in inventory and receivables into cash.
However, there has been a notable reduction in the cash conversion cycle in subsequent years. By December 31, 2024, the cash conversion cycle had reached 0.00 days, implying that Dayforce Inc. was able to receive cash from sales almost immediately after making investments in inventory and other operating activities.
This improvement in the cash conversion cycle suggests that Dayforce Inc. has become more efficient in managing its working capital and optimizing its cash flow processes. The decreasing trend indicates that the company has been successful in streamlining its operations and enhancing its liquidity position over the years.
Peer comparison
Dec 31, 2024