Dayforce Inc. (DAY)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 2,546,300 2,398,200 2,109,400 2,227,500 2,098,200
ROE 0.71% 2.29% -3.48% -3.38% -0.19%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $18,100K ÷ $2,546,300K
= 0.71%

The return on equity (ROE) of Dayforce Inc. has shown fluctuations over the past five years. The company experienced negative ROE figures in 2020, 2021, and 2022, indicating that the company's net income was insufficient to generate adequate returns for its shareholders relative to the equity invested.

However, there was a noticeable improvement in the ROE in 2023, reaching 2.29%, suggesting that the company was able to increase profitability or manage its equity more effectively during that period. In 2024, the ROE slightly declined to 0.71%, but remained positive, indicating a continued ability to generate returns for shareholders relative to the equity invested.

Overall, Dayforce Inc. should continue to focus on improving its profitability and effectively managing its equity to sustain or further enhance its return on equity in the future.