Dayforce Inc. (DAY)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 570,300 | 431,900 | 367,500 | 188,200 | 281,300 |
| Short-term investments | US$ in thousands | — | — | — | — | 1,066,800 |
| Receivables | US$ in thousands | 234,400 | 184,700 | 150,300 | 105,500 | 84,100 |
| Total current liabilities | US$ in thousands | 5,334,900 | 5,079,800 | 3,741,900 | 3,863,900 | 3,371,700 |
| Quick ratio | 0.15 | 0.12 | 0.14 | 0.08 | 0.42 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($570,300K
+ $—K
+ $234,400K)
÷ $5,334,900K
= 0.15
The quick ratio of Dayforce Inc. has fluctuated over the past five years, ranging from 0.08 to 0.42. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its liquid assets.
In 2023, the quick ratio improved to 0.15 from 0.12 in 2022, indicating a better ability to cover current liabilities with quick assets. However, the ratio is still relatively low, suggesting that Dayforce Inc. may continue to face challenges in meeting its short-term obligations.
Comparing to the ratio of 0.42 in 2019, the significant decline in 2020 followed by fluctuating ratios in the subsequent years may signify changing liquidity levels or management practices within the company. Further analysis of the company's financial health and operating efficiency is recommended to gain a deeper understanding of the factors influencing the quick ratio fluctuations.
Peer comparison
Dec 31, 2023