Dayforce Inc. (DAY)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 133,100 | -25,800 | -35,500 | 7,800 | 72,300 |
| Total assets | US$ in thousands | 9,010,900 | 8,463,500 | 7,166,200 | 6,701,300 | 6,085,700 |
| Operating ROA | 1.48% | -0.30% | -0.50% | 0.12% | 1.19% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $133,100K ÷ $9,010,900K
= 1.48%
Based on the historical data presented, the operating return on assets (operating ROA) for Dayforce Inc. has fluctuated over the past five years.
In 2019, the company exhibited a relatively healthy operating ROA of 1.19%, indicating that it generated a positive return from its operating activities relative to its total assets. However, this performance declined significantly in 2020 to 0.12%, suggesting a decrease in the efficiency of utilizing assets to generate operating profits.
The trend continued in 2021 and 2022, with negative operating ROA figures of -0.50% and -0.30% respectively. These negative values imply that in those years, the company's operating income was insufficient to cover the asset base, leading to a net loss from operations.
In 2023, there was a notable improvement in the operating ROA to 1.48%, signifying a return to positive territory and a better utilization of assets to generate operating profits compared to the previous years.
Overall, the analysis of Dayforce Inc.'s operating ROA indicates a mixed performance in effectively generating operating profits from its asset base over the past five years. The company experienced fluctuations in efficiency and profitability, with a positive trend observed in the most recent year.
Peer comparison
Dec 31, 2023