Dayforce Inc. (DAY)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 579,700 | 570,300 | 431,900 | 367,500 | 188,200 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 290,600 | 5,334,900 | 4,533,500 | 3,741,900 | 3,863,900 |
| Cash ratio | 1.99 | 0.11 | 0.10 | 0.10 | 0.05 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($579,700K
+ $—K)
÷ $290,600K
= 1.99
The cash ratio of Dayforce Inc. has exhibited a progressive increase over the years, from 0.05 as of December 31, 2020, reaching 1.99 by December 31, 2024. This signifies an improvement in the company's ability to cover its short-term obligations with its readily available cash and cash equivalents. The substantial surge in the cash ratio from 2023 to 2024 indicates a significant strengthening of Dayforce Inc.'s liquidity position, potentially as a result of enhanced cash management practices or increased cash reserves. Overall, the trend suggests that the company has been effectively managing its liquidity, which is crucial for financial stability and operational flexibility.
Peer comparison
Dec 31, 2024