Dayforce Inc. (DAY)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,010,900 | 8,463,500 | 7,166,200 | 6,701,300 | 6,085,700 |
| Total stockholders’ equity | US$ in thousands | 2,398,200 | 2,109,400 | 2,227,500 | 2,098,200 | 1,882,300 |
| Financial leverage ratio | 3.76 | 4.01 | 3.22 | 3.19 | 3.23 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,010,900K ÷ $2,398,200K
= 3.76
The financial leverage ratio of Dayforce Inc. has fluctuated over the past five years, ranging from 3.19 to 4.01. This ratio indicates that the company has been utilizing debt as a source of financing, with a higher ratio suggesting higher financial risk due to greater reliance on debt.
In 2022, the financial leverage ratio increased to 4.01, indicating a higher level of debt relative to equity compared to previous years. This could potentially signal increased financial risk for the company during that period.
However, in 2023, the financial leverage ratio decreased to 3.76, suggesting a slight reduction in the company's reliance on debt for financing its operations. This decrease may indicate a move towards a more conservative financial structure or improved financial health by reducing debt levels.
Overall, the fluctuation in the financial leverage ratio of Dayforce Inc. over the years highlights the company's changing capital structure and its ability to manage debt levels effectively. Further analysis of the company's financial statements and overall financial health would be necessary to fully assess the implications of these changes in the financial leverage ratio.
Peer comparison
Dec 31, 2023