Dayforce Inc. (DAY)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 78,200 | 132,100 | -34,300 | -54,400 | 5,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,546,300 | 2,398,200 | 2,109,400 | 2,227,500 | 2,098,200 |
| Return on total capital | 3.07% | 5.51% | -1.63% | -2.44% | 0.24% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $78,200K ÷ ($—K + $2,546,300K)
= 3.07%
Dayforce Inc.'s return on total capital has fluctuated over the years based on the provided data. As of December 31, 2020, the return on total capital was relatively low at 0.24%. However, there was a significant decline by December 31, 2021, with a negative return of -2.44%, indicating potential issues with profitability and capital management.
In the following years, there was a slight improvement in the return on total capital, but it remained negative by December 31, 2022, at -1.63%. The company started to show signs of recovery by December 31, 2023, with a return of 5.51%, indicating a more efficient use of capital to generate profits.
By December 31, 2024, the return on total capital further improved to 3.07%, suggesting a continued positive trend in capital utilization and profitability. Overall, Dayforce Inc. experienced fluctuations in its return on total capital over the years, potentially reflecting changes in business performance and efficiency in capital allocation.
Peer comparison
Dec 31, 2024