Dayforce Inc. (DAY)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,117,000 | 9,010,900 | 7,917,200 | 7,166,200 | 6,701,300 |
| Total stockholders’ equity | US$ in thousands | 2,546,300 | 2,398,200 | 2,109,400 | 2,227,500 | 2,098,200 |
| Financial leverage ratio | 3.58 | 3.76 | 3.75 | 3.22 | 3.19 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,117,000K ÷ $2,546,300K
= 3.58
The financial leverage ratio of Dayforce Inc. has been gradually increasing over the years, indicating a growth in the company's reliance on debt financing compared to its equity. From 3.19 in 2020 to 3.58 in 2024, the ratio demonstrates a fluctuating trend with a peak at 3.76 in 2023. This suggests that the company's debt levels have been rising relative to its equity, which may pose risks in terms of financial stability and solvency. It is essential for Dayforce Inc. to carefully assess and manage its debt obligations to maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2024