Dayforce Inc. (DAY)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 47.68% | 46.64% | 45.93% | 43.92% | 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% |
| Operating profit margin | 6.51% | 7.37% | 8.00% | 8.60% | 8.79% | 5.23% | 2.87% | -0.14% | -4.75% | -3.20% | -3.93% | -4.80% | -3.47% | -6.22% | -4.89% | -2.45% | 0.93% | 5.87% | 5.18% | 6.90% |
| 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% |
| Net profit margin | 1.03% | 3.12% | 2.89% | 3.30% | 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% |
Dayforce Inc.'s profitability ratios have shown fluctuating trends over the given periods.
1. Gross Profit Margin: The gross profit margin has generally decreased from 44.49% on March 31, 2020, to 47.68% on December 31, 2024. This indicates a positive trend in the company's ability to generate profits after deducting the cost of goods sold.
2. Operating Profit Margin: The operating profit margin experienced significant fluctuations, initially dropping into negative figures in 2021 but gradually recovering to 6.51% by December 31, 2024. The company has successfully managed to improve operational efficiency and control costs to achieve positive operating margins.
3. Pretax Margin: The pretax margin exhibits a similar pattern of negative margins in 2021, turning positive from March 31, 2023, onwards. This suggests the company's ability to generate profits before accounting for taxes has improved over time.
4. Net Profit Margin: The net profit margin reflects the company's bottom-line profitability, showing a turnaround from negative margins in 2021 to positive figures by December 31, 2024. This indicates improved efficiency in managing expenses and generating net income.
Overall, Dayforce Inc. has demonstrated an improving trend in profitability ratios, indicating enhanced operational efficiency and financial performance over the analyzed periods.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.26% | 1.54% | 1.44% | 1.26% | 1.48% | 0.85% | 0.49% | -0.02% | -0.75% | -0.48% | -0.49% | -0.47% | -0.50% | -0.67% | -0.66% | -0.27% | 0.12% | 0.83% | 0.74% | 0.90% |
| Return on assets (ROA) | 0.20% | 0.65% | 0.52% | 0.48% | 0.61% | 0.04% | -0.16% | -0.36% | -0.93% | -0.97% | -0.85% | -0.76% | -1.05% | -0.92% | -0.93% | -0.41% | -0.06% | 0.20% | 1.29% | 1.18% |
| Return on total capital | 3.09% | 3.90% | 3.79% | 4.56% | 4.91% | 3.09% | 1.75% | -0.09% | -2.79% | -1.98% | -2.41% | -3.08% | -2.44% | -3.43% | -2.60% | -1.19% | 0.24% | 2.48% | 2.81% | 3.67% |
| Return on equity (ROE) | 0.71% | 2.07% | 1.90% | 2.14% | 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% |
Based on the provided data, we can observe the following trends in Dayforce Inc.'s profitability ratios:
1. Operating return on assets (Operating ROA):
- The Operating ROA fluctuated over the periods but generally stayed negative in recent quarters, indicating that the company's core operations were not generating sufficient returns on its assets.
- There was a slight improvement in the Operating ROA from March 2023 to December 2024, suggesting potential operational enhancements.
2. Return on assets (ROA):
- The ROA also exhibited variability, with negative values in the last few quarters, implying that the company's overall profitability in relation to its total assets has been under pressure.
- There was a gradual recovery in ROA from March 2023 to December 2024, signaling a positive trend in asset utilization and profitability.
3. Return on total capital:
- The Return on Total Capital was negative in most quarters, reflecting challenges in generating returns on the total invested capital.
- A significant improvement was seen from March 2023 to December 2024, indicating a better utilization of the total capital employed by the company.
4. Return on equity (ROE):
- The ROE followed a similar pattern as the other ratios, remaining negative in recent quarters, highlighting the struggles in providing returns to the equity shareholders.
- There was a modest improvement in ROE from March 2023 to December 2024, suggesting a potential enhancement in creating value for the equity investors.
In summary, Dayforce Inc. faced profitability challenges in the short term but showed signs of improvement in asset and capital efficiency towards the end of the analyzed period, potentially indicating a positive trajectory for the company's financial performance.