Dayforce Inc. (DAY)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 37,600 | 96,000 | -62,900 | -90,300 | -20,000 |
| Revenue | US$ in thousands | 1,760,000 | 1,513,700 | 1,246,200 | 1,024,200 | 842,500 |
| Pretax margin | 2.14% | 6.34% | -5.05% | -8.82% | -2.37% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $37,600K ÷ $1,760,000K
= 2.14%
The pretax margin of Dayforce Inc. has shown fluctuating performance over the past five years. In December 2020, the company reported a pretax margin of -2.37%, indicating that for every dollar of revenue generated, the company incurred a pre-tax loss of $0.0237. This negative trend continued in December 2021 with a pretax margin of -8.82%, reflecting a significant increase in losses relative to revenue.
However, the company's financial performance improved in December 2022 with a pretax margin of -5.05%, although it remained in negative territory. The positive turnaround occurred in December 2023, where Dayforce Inc. achieved a pretax margin of 6.34%, indicating that the company generated a profit before taxes. This improvement suggests enhanced operational efficiency or cost management strategies.
By December 2024, the pretax margin slightly decreased to 2.14%, signaling a slowdown in profitability growth. Although the company continued to generate profits, the slight decline in the pretax margin highlights the need for Dayforce Inc. to implement strategies to sustain or further enhance profitability levels in the coming years.
Peer comparison
Dec 31, 2024