Dayforce Inc. (DAY)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 570,300 | 510,300 | 486,600 | 428,600 | 431,900 | 408,400 | 371,200 | 354,800 | 367,500 | 378,800 | 335,200 | 339,600 | 188,200 | 554,600 | 526,900 | 255,300 | 281,300 | 270,900 | 237,900 | 206,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 496,000 | 459,000 | 1,617,100 | 1,066,800 | 481,000 | 1,889,600 | 2,494,900 |
| Total current liabilities | US$ in thousands | 5,334,900 | 5,411,500 | 4,604,200 | 6,591,400 | 5,079,800 | 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 | 3,371,700 | 2,743,200 | 4,093,300 | 4,683,700 |
| Cash ratio | 0.11 | 0.09 | 0.11 | 0.07 | 0.09 | 0.09 | 0.07 | 0.05 | 0.10 | 0.07 | 0.10 | 0.08 | 0.05 | 0.38 | 0.36 | 0.50 | 0.40 | 0.27 | 0.52 | 0.58 |
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, ranging from a low of 0.05 to a high of 0.58. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In the most recent period, the cash ratio was 0.11, indicating that for every dollar of current liabilities, the company had $0.11 in cash and cash equivalents available. The company has generally maintained a relatively stable cash position, with ratios hovering around 0.09 to 0.11 in the past few quarters.
It is important to note that a higher cash ratio suggests a stronger liquidity position and ability to meet short-term obligations, while a lower cash ratio may signal potential liquidity challenges. The significant increase in the cash ratio from 0.05 in March 2020 to 0.58 in June 2019 may indicate improved cash management or a buildup of cash reserves during that period.
Overall, Dayforce Inc. appears to have a moderate level of liquidity based on its cash ratio performance in the past few years, indicating that the company has a reasonable level of cash to cover its short-term obligations. However, further analysis of the company's cash flow and working capital management may provide a more comprehensive view of its liquidity position.
Peer comparison
Dec 31, 2023