Dayforce Inc. (DAY)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 982,000 | 5,955,200 | 4,894,000 | 4,144,100 | 4,122,600 |
| Total current liabilities | US$ in thousands | 290,600 | 5,334,900 | 4,533,500 | 3,741,900 | 3,863,900 |
| Current ratio | 3.38 | 1.12 | 1.08 | 1.11 | 1.07 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $982,000K ÷ $290,600K
= 3.38
Dayforce Inc.'s current ratio has shown a fluctuating trend over the past five years. Starting at 1.07 in December 2020, it increased slightly to 1.11 in December 2021, before dropping to 1.08 in December 2022. However, the ratio then improved to 1.12 in December 2023 but saw a significant jump to 3.38 by December 2024.
Overall, the current ratio measures the company's ability to cover its short-term obligations with its current assets. A current ratio above 1 indicates that Dayforce Inc. has more current assets than current liabilities, suggesting good liquidity and short-term financial health. The significant increase in the current ratio in December 2024 may be attributed to improved cash reserves or a reduction in short-term debts.
It is important for Dayforce Inc. to maintain an appropriate current ratio to ensure it can meet its short-term financial obligations without liquidity issues. The company should continue to monitor and manage its current assets and liabilities effectively to sustain its financial stability.
Peer comparison
Dec 31, 2024