Dayforce Inc. (DAY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 132,100 | -34,300 | -54,400 | 5,100 | 66,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,398,200 | 2,109,400 | 2,227,500 | 2,098,200 | 1,882,300 |
| Return on total capital | 5.51% | -1.63% | -2.44% | 0.24% | 3.54% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $132,100K ÷ ($—K + $2,398,200K)
= 5.51%
The return on total capital for Dayforce Inc. has fluctuated over the past five years. In 2023, the return on total capital was 5.51%, showing an improvement compared to the negative returns in 2022 (-1.63%) and 2021 (-2.44%). The return in 2020 was minimal at 0.24%, while in 2019, it stood at 3.54%.
Overall, Dayforce Inc. has shown volatility in its return on total capital performance, with a mix of negative and positive returns in recent years. It is important for the company to continue monitoring and improving its capital utilization efficiency to ensure sustainable profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2023