Dayforce Inc. (DAY)

Current ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total current assets US$ in thousands 5,955,200 5,440,300 4,144,100 4,122,600 3,623,700
Total current liabilities US$ in thousands 5,334,900 5,079,800 3,741,900 3,863,900 3,371,700
Current ratio 1.12 1.07 1.11 1.07 1.07

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,955,200K ÷ $5,334,900K
= 1.12

The current ratio of Dayforce Inc. has demonstrated some fluctuations over the past five years. The current ratio measures the company's ability to meet its short-term obligations with its current assets.

In 2023, the current ratio improved to 1.12 from 1.07 in 2022. This indicates that Dayforce Inc. had $1.12 in current assets for every $1 of current liabilities, suggesting that the company's liquidity position strengthened in 2023.

Comparing the current ratio over the years, it can be seen that Dayforce Inc. has generally maintained a current ratio above 1, which is considered a healthy sign as it indicates that the company has more current assets than current liabilities to cover its short-term obligations.

However, it is important to note that while an increasing current ratio is generally positive, particularly if it exceeds 1, a current ratio that is too high may suggest that the company is not efficiently utilizing its current assets. Therefore, further analysis of other liquidity ratios and consideration of industry benchmarks would provide a more comprehensive assessment of Dayforce Inc.'s liquidity position.


Peer comparison

Dec 31, 2023