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.