Dayforce Inc. (DAY)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.58 | 3.76 | 3.75 | 3.22 | 3.19 |
The solvency ratios of Dayforce Inc. provide insights into the company's ability to meet its financial obligations in the long term.
- Debt-to-assets ratio remained consistently at 0.00 from December 31, 2020, to December 31, 2024, indicating that the company's total debt relative to its total assets is negligible. This suggests that Dayforce Inc. is not highly leveraged and has a strong asset base to cover its debt obligations.
- Debt-to-capital ratio also stayed at 0.00 throughout the period, reflecting that the company's debt is not a significant proportion of its total capital. This indicates a low reliance on debt financing in its capital structure.
- Debt-to-equity ratio was 0.00 for each year, indicating that Dayforce Inc. has no debt relative to its shareholders' equity. This implies a low financial risk as the company is not relying on external borrowings to finance its operations.
- Financial leverage ratio, however, fluctuated slightly over the years, ranging from 3.19 to 3.76. This ratio measures the extent to which the company uses debt in its capital structure. The fluctuation suggests some variation in the company's leverage over time, but the overall level of financial leverage seems moderate.
In summary, the solvency ratios indicate that Dayforce Inc. has a solid financial position with minimal debt and adequate assets to support its operations. The consistent low debt levels and stable financial leverage ratio suggest a healthy balance between debt and equity in the company's capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.93 | 3.66 | -1.20 | -1.52 | 0.20 |
Dayforce Inc.'s interest coverage ratio has varied significantly over the past five years. In December 31, 2020, the ratio was 0.20, indicating that the company's operating income was only able to cover 20% of its interest expenses. This low ratio raises concerns about Dayforce Inc.'s ability to meet its interest obligations.
The following two years, December 31, 2021 and December 31, 2022, show even lower interest coverage ratios of -1.52 and -1.20, respectively. A negative interest coverage ratio suggests that Dayforce Inc.'s operating income was insufficient to cover its interest expenses, indicating financial distress and the potential inability to meet interest payments.
However, the company's interest coverage improved in December 31, 2023, with a ratio of 3.66, indicating that the operating income was 3.66 times the interest expenses. This improvement suggests a better ability to cover interest expenses and indicates a potentially healthier financial position.
In December 31, 2024, the interest coverage ratio slightly decreased to 1.93, still indicating that the company's operating income was able to cover its interest expenses, albeit at a lower level compared to the previous year.
Overall, Dayforce Inc.'s interest coverage ratio has shown significant fluctuations, with some years indicating financial distress and potential difficulties in meeting interest obligations, while other years show improvement and a better ability to cover interest expenses. It is important for stakeholders to monitor this ratio closely to assess the company's financial health and debt repayment capacity.