Dayforce Inc. (DAY)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 982,000 | 4,903,900 | 5,836,600 | 7,555,400 | 5,955,200 | 5,914,600 | 5,067,200 | 7,041,700 | 4,894,000 | 5,007,200 | 6,037,500 | 7,978,000 | 4,144,100 | 5,963,600 | 3,755,700 | 4,832,200 | 4,122,600 | 3,371,300 | 3,350,000 | 4,056,500 |
| 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 |
| Current ratio | 3.38 | 1.15 | 1.11 | 1.07 | 1.12 | 1.09 | 1.10 | 1.07 | 1.08 | 1.07 | 1.06 | 1.05 | 1.11 | 1.07 | 1.11 | 1.09 | 1.07 | 1.23 | 1.22 | 1.08 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $982,000K ÷ $290,600K
= 3.38
Dayforce Inc.'s current ratio has exhibited fluctuations over the observed periods. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, ranged from a low of 1.05 on March 31, 2022, to a high of 3.38 on December 31, 2024.
A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations, while a ratio above 1 shows that it has more current assets than current liabilities. In this case, Dayforce Inc. mostly maintained its current ratio above 1, reflecting a generally healthy liquidity position.
However, the significant spike in the current ratio to 3.38 on December 31, 2024, warrants further investigation as it may indicate an abnormality or a one-time event impacting the company's financial position. It could be a result of an influx of cash or highly liquid assets during that period.
Overall, while fluctuations in the current ratio are normal for businesses, it is important for Dayforce Inc. to ensure that it maintains a healthy balance between current assets and liabilities to sustain its operations and meet its financial obligations effectively.
Peer comparison
Dec 31, 2024