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.