Dayforce Inc. (DAY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.14% | 42.71% | 37.97% | 37.33% | 40.51% |
| Operating profit margin | 5.91% | 8.79% | -2.75% | -5.31% | 0.61% |
| Pretax margin | 2.14% | 6.34% | -5.05% | -8.82% | -2.37% |
| Net profit margin | 1.03% | 3.62% | -5.89% | -7.36% | -0.47% |
Dayforce Inc.'s gross profit margin has shown a slight decrease from 40.51% in 2020 to 37.33% in 2021, before stabilizing around 37-38% over the next couple of years, and then increasing to 46.14% in 2024. This indicates that the company has been able to improve its efficiency in generating profits from its sales, with a significant jump seen in 2024.
The operating profit margin for Dayforce Inc. was negative in 2020 and 2021, indicating that the company's operating expenses were higher than its operating income during these years. However, there was a notable improvement in 2023 and 2024, with the operating profit margin turning positive to 8.79% and 5.91%, respectively. This suggests that the company became more effective in managing its operating costs in those years.
Similarly, the pretax margin for Dayforce Inc. was negative in 2020 and 2021, reflecting that the company had losses before taking into account taxes. However, the pretax margin improved to positive figures in 2023 and 2024, reaching 6.34% and 2.14%, respectively. This highlights the company's ability to generate profits before tax expenses over the last two years.
Lastly, the net profit margin for Dayforce Inc. was negative in 2020 and 2021 but turned positive in 2023 and 2024. The net profit margin increased steadily from 2023 to 2024, indicating that the company was able to effectively manage its overall expenses and generate profits for its shareholders.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.14% | 1.48% | -0.43% | -0.76% | 0.08% |
| Return on assets (ROA) | 0.20% | 0.61% | -0.93% | -1.05% | -0.06% |
| Return on total capital | 3.07% | 5.51% | -1.63% | -2.44% | 0.24% |
| Return on equity (ROE) | 0.71% | 2.29% | -3.48% | -3.38% | -0.19% |
Based on the data provided for Dayforce Inc., the profitability ratios show a mixed performance over the years.
- Operating return on assets (Operating ROA) improved from negative values in 2021 and 2022 to positive values in 2023 and 2024, indicating the company's ability to generate operating income relative to its total assets.
- Return on assets (ROA) also showed a similar trend, with negative values in 2021 and 2022 turning positive in 2023 and 2024. This metric assesses the company's ability to generate profits from its assets.
- Return on total capital fluctuated, with significant negative values in 2021 and 2022 before showing improvement in 2023 and 2024. This ratio measures the company's overall profitability from all sources of capital.
- Return on equity (ROE) followed a similar pattern to ROA, with negative values in 2021 and 2022 improving to positive values in 2023 and 2024. ROE indicates the company's ability to generate profits based on shareholders' equity.
Overall, the profitability ratios of Dayforce Inc. have shown a trend of recovery and improvement in recent years, reflecting the company's efforts to enhance its operational efficiency and financial performance. Further analysis and comparison with industry standards would provide additional insights into the company's profitability position.