Dayforce Inc. (DAY)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	37,600	72,200	66,400	86,000	96,000	58,000	28,500	-10,100	-62,900	-70,900	-83,300	-102,100	-90,300	-107,400	-84,300	-49,400	-20,000	19,200	22,600	34,200
Revenue (ttm)	US$ in thousands	1,760,000	1,694,500	1,632,000	1,574,600	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
Pretax margin		2.14%	4.26%	4.07%	5.46%	6.34%	4.00%	2.05%	-0.76%	-5.05%	-5.95%	-7.35%	-9.43%	-8.82%	-11.13%	-9.24%	-5.78%	-2.37%	2.28%	2.69%	4.06%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $37,600K ÷ $1,760,000K
= 2.14%

The pretax margin of Dayforce Inc. has shown fluctuating trends over the past few years. Starting from March 31, 2020, the company had a pretax margin of 4.06%, indicating that 4.06% of its revenue before taxes was converted to pre-tax profit. This ratio decreased in the subsequent quarters, reaching negative figures by December 31, 2020, and continued to be negative until March 31, 2023.

From June 30, 2023, there was a positive turnaround as the pretax margin improved gradually, with figures of 2.05% by that period and reaching 6.34% by December 31, 2023. This upward trend continued through the following periods until December 31, 2024, where it stood at 2.14%.

The pretax margin is a critical indicator of a company's efficiency in managing its costs and generating profits before tax expenses. Dayforce Inc.'s recent improvement in its pretax margin suggests enhanced operational efficiency and cost management strategies in the latter period, reflecting positively on its overall financial performance.