Dayforce Inc. (DAY)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	18,100	54,800	-73,400	-75,400	-4,000
Total assets	US$ in thousands	9,117,000	9,010,900	7,917,200	7,166,200	6,701,300
ROA		0.20%	0.61%	-0.93%	-1.05%	-0.06%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $18,100K ÷ $9,117,000K
= 0.20%

Dayforce Inc.'s Return on Assets (ROA) is a crucial financial metric that indicates the company's efficiency in generating profits from its assets. Over the five-year period from 2020 to 2024, Dayforce Inc.'s ROA trended irregularly.

At the end of 2020, the company had an ROA of -0.06%, implying that it incurred a slight loss in generating profits relative to its assets. This negative value suggests that Dayforce Inc. struggled to utilize its assets effectively to generate earnings.

However, the situation appeared to deteriorate further by the end of 2021, with the ROA dropping to -1.05%. This significant decline indicates a substantial decrease in the company's ability to generate profits relative to its assets, potentially raising concerns about its operational efficiency and profitability.

In 2022, the ROA improved slightly to -0.93%, but it still remained in negative territory. Despite this improvement, Dayforce Inc. continued to face challenges in efficiently leveraging its assets to generate profits.

The turning point came in 2023 when the ROA turned positive, reaching 0.61%. This positive value suggests that Dayforce Inc. managed to enhance its efficiency in generating profits from its assets, indicating a potential improvement in performance and profitability.

By the end of 2024, the ROA stood at 0.20%, indicating a slight decrease from the previous year. While the positive value demonstrates continued profitability, the slight decline may signal a need for the company to further optimize its asset utilization to sustain or enhance its profitability levels.

Overall, the fluctuating ROA trend of Dayforce Inc. over the five-year period underscores the company's varying ability to generate profits relative to its assets. It is essential for Dayforce Inc. to closely monitor its ROA and implement strategies to improve asset efficiency continuously, thereby driving sustainable growth and profitability.