Dayforce Inc. (DAY)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	104,100	133,100	-34,300	-54,400	5,100
Total assets	US$ in thousands	9,117,000	9,010,900	7,917,200	7,166,200	6,701,300
Operating ROA		1.14%	1.48%	-0.43%	-0.76%	0.08%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $104,100K ÷ $9,117,000K
= 1.14%

Operating return on assets (Operating ROA) is a financial metric that measures a company's efficiency in generating operating income from its assets. It is calculated by dividing operating income by average total assets.

Analyzing the Operating ROA trend of Dayforce Inc. from 2020 to 2024 provides insight into the company's operational efficiency and asset utilization:

1. In 2020, Dayforce Inc. reported an Operating ROA of 0.08%, indicating that it generated a modest return on its assets during that period.

2. The following year, in 2021, the company experienced a decline in its Operating ROA to -0.76%, signifying that its operating income was insufficient to cover the asset base, resulting in a negative return on assets.

3. The negative trend continued in 2022 with an Operating ROA of -0.43%, suggesting ongoing challenges in effectively utilizing its assets to generate operating income.

4. However, there was a significant improvement in 2023, with Dayforce Inc. achieving an Operating ROA of 1.48%. This indicates a positive turnaround in operational performance, as the company was able to generate a higher return on its assets.

5. In 2024, the positive trend continued, with Dayforce Inc. maintaining a solid Operating ROA of 1.14%, demonstrating sustained operational efficiency and effective asset utilization.

Overall, the fluctuating Operating ROA figures over the years reflect the company's efforts to improve operational performance and optimize asset utilization. It is essential for Dayforce Inc. to continue monitoring and enhancing its operational efficiency to ensure sustainable profitability and maximize returns for its stakeholders.