Dayforce Inc. (DAY)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 2,116.85 | 2,198.32 | 1,902.25 | 2,893.03 | 1,975.63 | — | — | — | 2,011.62 | 3,268.72 | 2,079.97 | 3,006.71 | 2,737.79 | 1,979.93 | 2,049.46 | 2,846.30 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 2,116.85 | 2,198.32 | 1,902.25 | 2,893.03 | 1,975.63 | 0.00 | 0.00 | 0.00 | 2,011.62 | 3,268.72 | 2,079.97 | 3,006.71 | 2,737.79 | 1,979.93 | 2,049.46 | 2,846.30 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Dayforce Inc. has fluctuated significantly over the periods provided. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The company's cash conversion cycle ranged from a low of 1,902.25 days to a high of 3,268.72 days during the period. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert its resources into cash more quickly.
Specifically, the company saw improvements in its cash conversion cycle in the quarters ending in September 2020 and December 2021, where the cycle decreased notably. However, there were significant increases during periods such as March 2021 and September 2021, indicating potential challenges in working capital management during those times.
The latest data for March 31, 2024, shows a cash conversion cycle of 0.00 days, which could potentially indicate that the company has optimized its working capital management to efficiently convert resources into cash.
Overall, analyzing the trend of Dayforce Inc.'s cash conversion cycle can provide insights into the company's operational efficiency, working capital management, and potential cash flow challenges.
Peer comparison
Dec 31, 2024