Dayforce Inc. (DAY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.71% | 37.97% | 37.33% | 40.51% | 44.68% |
| Operating profit margin | 8.79% | -2.07% | -3.47% | 0.93% | 8.77% |
| Pretax margin | 6.34% | -5.05% | -8.82% | -2.37% | 4.16% |
| Net profit margin | 3.62% | -5.89% | -7.36% | -0.47% | 9.55% |
Dayforce Inc.'s profitability ratios have fluctuated over the past five years. The gross profit margin has shown a decreasing trend from 44.68% in 2019 to 42.71% in 2023. This indicates that the company's ability to generate profits from its core business operations has slightly improved in the most recent year.
The operating profit margin improved significantly from negative values in 2020 and 2021 to 8.79% in 2023. This suggests that Dayforce Inc. has been able to control its operating expenses more effectively, resulting in higher profitability from its normal business activities.
The pretax margin also demonstrates an improvement from negative values in 2020 and 2021 to 6.34% in 2023. This indicates that the company's overall profitability before accounting for taxes has strengthened over the years.
However, the net profit margin remains positive in 2023 but has fluctuated significantly in recent years, with negative values in 2020 and 2021. This suggests that Dayforce Inc. has faced challenges in generating profits after accounting for all expenses and taxes, but the situation has improved in the most recent year.
In conclusion, Dayforce Inc. has shown varying profitability trends over the past five years, with recent improvements in both operating and pretax margins. Management should continue to focus on controlling costs and optimizing revenue streams to sustain and enhance profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.48% | -0.30% | -0.50% | 0.12% | 1.19% |
| Return on assets (ROA) | 0.61% | -0.87% | -1.05% | -0.06% | 1.29% |
| Return on total capital | 5.51% | -1.63% | -2.44% | 0.24% | 3.54% |
| Return on equity (ROE) | 2.29% | -3.48% | -3.38% | -0.19% | 4.18% |
Dayforce Inc.'s profitability ratios show a mixed performance over the past five years. The Operating return on assets (Operating ROA) has been inconsistent, with a significant increase in 2023 to 1.48% from negative figures in the previous two years. This could indicate improved operational efficiency in generating profits from its assets.
The Return on assets (ROA) ratio has also shown inconsistency, with a positive figure in 2023 but negative values in the two preceding years. This suggests that the company may have faced challenges in effectively utilizing its assets to generate earnings in those years.
On the other hand, the Return on total capital ratio has shown improvement in 2023, indicating that Dayforce Inc. has been able to generate a better return on its total capital investment compared to the previous year, despite fluctuations in the earlier years.
Lastly, the Return on equity (ROE) ratio has displayed a similar trend to the ROA ratios, with negative values in some years but a positive return in 2023. This indicates that the company has been able to generate a return for its shareholders in the most recent year after facing challenges in the past. Overall, Dayforce Inc. may have made strategic improvements in its operations and financial management, as reflected in the improved profitability ratios in 2023.