Dayforce Inc. (DAY)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	132,100	93,900	62,900	21,900	-34,300	-40,600	-50,400	-66,000	-54,400	-76,200	-57,200	-25,600	5,100	45,800	51,100	64,600	66,700	56,700	64,100	28,200
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	659,300	660,700	662,100
Total stockholders’ equity	US$ in thousands	2,398,200	2,266,900	2,240,200	2,194,200	2,109,400	2,051,200	2,094,300	2,140,800	2,227,500	2,221,800	2,199,800	2,159,300	2,098,200	2,036,300	1,985,700	1,885,600	1,882,300	1,853,100	1,757,100	1,686,800
Return on total capital		5.51%	4.14%	2.81%	1.00%	-1.63%	-1.98%	-2.41%	-3.08%	-2.44%	-3.43%	-2.60%	-1.19%	0.24%	2.25%	2.57%	3.43%	3.54%	2.26%	2.65%	1.20%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $132,100K ÷ ($—K + $2,398,200K)
= 5.51%

Dayforce Inc.'s return on total capital has shown fluctuations over the historical period. The return on total capital was negative in some quarters, indicating that the company was not generating sufficient profits to cover the total capital invested in the business. However, there has been a general improvement in the return on total capital trend over the recent quarters, with positive returns recorded.

Specifically, in the recent quarter ending December 31, 2023, Dayforce Inc. achieved a return on total capital of 5.51%, which indicates that the company generated a positive return on the total capital employed in the business. This improvement in return on total capital suggests that the company is becoming more efficient in utilizing its capital to generate profits.

Overall, monitoring the return on total capital is crucial for stakeholders as it provides insights into the company's profitability and efficiency in utilizing its total capital resources. The recent positive trend in return on total capital for Dayforce Inc. is a positive sign, indicating a potentially healthier financial performance.