Dayforce Inc. (DAY)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	570,300	431,900	367,500	188,200	281,300
Short-term investments	US$ in thousands	—	—	—	—	1,066,800
Total current liabilities	US$ in thousands	5,334,900	5,079,800	3,741,900	3,863,900	3,371,700
Cash ratio		0.11	0.09	0.10	0.05	0.40

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($570,300K + $—K) ÷ $5,334,900K
= 0.11

The cash ratio of Dayforce Inc. has fluctuated over the past five years, indicating the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. In 2023, the cash ratio stands at 0.11, showing an improvement compared to the prior year. This increase suggests that Dayforce Inc. had a higher proportion of cash and cash equivalents relative to its current liabilities in 2023, which is a positive sign of liquidity.

However, the cash ratio was lower in 2022 at 0.09, indicating a slightly weaker liquidity position compared to the current year. The company's cash ratio was relatively stable in 2021 at 0.10, which suggests a consistent ability to meet short-term obligations using cash reserves. In 2020, the cash ratio was notably lower at 0.05, signaling a potential liquidity challenge during that period.

The most significant change occurred in 2019 when the cash ratio was exceptionally high at 0.40, indicating a substantial amount of cash and cash equivalents relative to short-term liabilities. This could be due to various factors like conservative financial management or specific events impacting cash balances.

Overall, the trend in Dayforce Inc.'s cash ratio demonstrates variations in its liquidity position over the past five years, reflecting the company's management of cash resources in meeting short-term obligations. Further analysis of other financial ratios and qualitative factors would provide a more comprehensive assessment of the company's overall financial health and liquidity management.