Dayforce Inc. (DAY)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 42.71% | 42.19% | 41.08% | 40.08% | 37.97% | 37.07% | 36.70% | 36.21% | 37.33% | 37.71% | 38.10% | 39.10% | 40.51% | 42.02% | 43.57% | 44.49% | 44.68% | 44.41% | 43.74% | 42.68% |
| Operating profit margin | 8.79% | 6.73% | 4.86% | 2.38% | -2.07% | -2.22% | -3.42% | -4.80% | -3.47% | -6.22% | -4.89% | -2.45% | 0.93% | 5.87% | 6.73% | 8.45% | 8.77% | 9.08% | 10.59% | 7.27% |
| Pretax margin | 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% | 4.16% | 4.20% | 5.14% | -4.02% |
| Net profit margin | 3.62% | 0.28% | -0.95% | -2.73% | -5.89% | -6.52% | -6.84% | -7.72% | -7.36% | -8.62% | -6.92% | -3.72% | -0.47% | 1.40% | 8.97% | 9.03% | 9.55% | 9.73% | 2.51% | -6.55% |
The profitability ratios of Dayforce Inc. show varying trends over the past five years.
1. Gross Profit Margin: The gross profit margin has generally been increasing from around 37% in 2019 to over 42% in 2023. This indicates that the company has been able to improve its efficiency in generating profit from its revenue over time.
2. Operating Profit Margin: The operating profit margin has been fluctuating but shows an overall improving trend, going from negative figures in 2020 and 2021 to positive figures in 2023. This suggests that the company has been able to control its operating expenses more effectively.
3. Pretax Margin: The pretax margin also shows an improving trend, moving from negative figures in 2020 and 2021 to positive figures in 2023. This indicates that the company has been able to manage its pre-tax earnings better over the years.
4. Net Profit Margin: The net profit margin has fluctuated significantly over the years, with negative margins in some quarters. However, there has been an overall improvement in profitability, with positive figures in the recent quarters. This shows that the company has been able to increase its bottom-line profit relative to revenues.
Overall, Dayforce Inc. has shown positive signs of improving profitability ratios over the past few years, indicating better operational efficiency and financial performance.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.48% | 1.09% | 0.83% | 0.31% | -0.30% | -0.33% | -0.43% | -0.47% | -0.50% | -0.67% | -0.66% | -0.27% | 0.12% | 0.83% | 0.97% | 1.10% | 1.19% | 1.34% | 1.23% | 0.76% |
| Return on assets (ROA) | 0.61% | 0.04% | -0.16% | -0.36% | -0.87% | -0.97% | -0.85% | -0.76% | -1.05% | -0.92% | -0.93% | -0.41% | -0.06% | 0.20% | 1.29% | 1.18% | 1.29% | 1.44% | 0.29% | -0.69% |
| Return on total capital | 5.51% | 4.14% | 2.81% | 1.00% | -1.63% | -1.98% | -2.41% | -3.08% | -2.44% | -3.43% | -2.60% | -1.19% | 0.24% | 2.25% | 2.57% | 3.43% | 3.54% | 2.26% | 2.65% | 1.20% |
| Return on equity (ROE) | 2.29% | 0.18% | -0.59% | -1.65% | -3.48% | -3.79% | -3.71% | -3.91% | -3.38% | -3.74% | -2.87% | -1.47% | -0.19% | 0.58% | 3.79% | 4.04% | 4.18% | 4.21% | 1.12% | -2.96% |
The profitability ratios of Dayforce Inc. show a mixed trend over the past few quarters.
1. Operating return on assets (Operating ROA) has been gradually improving from negative figures in late 2021 to positive territory, reaching 1.48% by the end of 2023. This indicates that the company is generating a better operating profit in relation to its total assets.
2. Return on assets (ROA) was negative in most of 2021 and early 2022 but turned positive in 2022 and fluctuated between 0.04% and 1.44% in 2023. This metric demonstrates the company's ability to generate earnings from its assets.
3. Return on total capital shows some volatility but an overall improvement trend, with the ratio increasing from -3.08% in March 2022 to 5.51% by the end of 2023. This reveals that the company is making better use of its total capital to generate returns for shareholders and debt holders.
4. Return on equity (ROE) has shown similar ups and downs, but overall an increasing trend from -3.91% in June 2022 to 2.29% by the end of 2023. ROE measures the profitability of a company as a ratio of net income to shareholders' equity, indicating the return generated on shareholders' investments.
In conclusion, Dayforce Inc. has shown improvements in its profitability ratios, particularly in its ability to generate returns on assets, capital, and equity over the analyzed period. However, continued monitoring of these ratios is advisable to ensure sustained and increasing profitability.