Dayforce Inc. (DAY)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	646,500	611,800	570,300	530,400	473,200	442,000	416,100	392,200	382,300	363,900	347,500	334,000	341,300	353,600	365,700	375,100	368,200	356,400	341,100	325,600
Revenue (ttm)	US$ in thousands	1,513,700	1,450,100	1,388,200	1,323,500	1,246,200	1,192,200	1,133,800	1,083,000	1,024,200	964,900	912,100	854,300	842,500	841,500	839,400	843,100	824,100	802,600	779,900	762,900
Gross profit margin		42.71%	42.19%	41.08%	40.08%	37.97%	37.07%	36.70%	36.21%	37.33%	37.71%	38.10%	39.10%	40.51%	42.02%	43.57%	44.49%	44.68%	44.41%	43.74%	42.68%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $646,500K ÷ $1,513,700K
= 42.71%

The gross profit margin of Dayforce Inc. has shown a consistent improvement over the past several quarters. From December 2019 to December 2023, the gross profit margin has increased steadily from 42.68% to 42.71%. This upward trend indicates that the company has been able to improve its profitability by effectively managing its production costs and optimizing its pricing strategies.

The highest gross profit margin was recorded in March 2020 at 44.68%, reflecting a strong performance during that period. Subsequently, there was a slight decline in the following quarters but the margin remained relatively stable above 40%. This demonstrates the company's ability to maintain healthy profit margins even during challenging business environments.

The latest gross profit margin of 42.71% in December 2023 indicates that Dayforce Inc. continues to generate a healthy level of profit from its core operations. This metric is crucial for assessing the company's operational efficiency and pricing strategies, highlighting its ability to effectively control costs and generate revenue.

Overall, the consistent improvement in gross profit margin reflects positively on Dayforce Inc.'s financial performance and signals its strength in managing production costs and pricing strategies to ensure sustainable profitability.