Dayforce Inc. (DAY)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 579,700 | 494,100 | 466,200 | 392,500 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,649,500 |
| Total current liabilities | US$ in thousands | 290,600 | 4,277,900 | 5,280,300 | 7,049,000 | 5,334,900 | 5,411,500 | 4,604,200 | 6,591,400 | 4,533,500 | 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 |
| Cash ratio | 1.99 | 0.12 | 0.09 | 0.06 | 0.11 | 0.09 | 0.11 | 0.07 | 0.10 | 0.09 | 0.07 | 0.05 | 0.10 | 0.07 | 0.10 | 0.08 | 0.05 | 0.20 | 0.19 | 1.04 |
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 shown fluctuations over the years based on the provided data. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
The cash ratio for Dayforce Inc. was at a healthy level of around 1.04 as of March 31, 2020, indicating that the company had more than enough cash to cover its short-term obligations at that time. However, the ratio dropped significantly to 0.19 by June 30, 2020, and remained relatively low around 0.10 for the next few quarters.
The ratio then saw a slight improvement but remained below 0.10 through March 31, 2023. There was a slight increase in the cash ratio to 0.11 by June 30, 2023, and then to 0.12 by September 30, 2024.
The cash ratio then spiked dramatically to 1.99 by December 31, 2024, suggesting a significant increase in the company's cash position relative to its short-term liabilities. This sharp increase in the cash ratio could be due to various factors such as increased cash reserves, reduced short-term liabilities, or a combination of both.
Overall, the cash ratio of Dayforce Inc. has exhibited fluctuations over the years, with periods of low ratios indicating potential liquidity challenges, followed by a significant improvement to a very high level by the end of 2024, signaling a strong cash position. An analysis of the company's cash management practices and short-term liquidity trends would provide further insights into its financial health.
Peer comparison
Dec 31, 2024