Dayforce Inc. (DAY)

Financial leverage ratio

		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
Total assets	US$ in thousands	9,010,900	8,943,200	8,118,800	10,061,500	8,463,500	8,006,400	9,082,300	11,059,500	7,166,200	9,001,500	6,807,000	7,798,800	6,701,300	5,918,000	5,853,900	6,470,100	6,085,700	5,436,200	6,729,300	7,259,100
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
Financial leverage ratio		3.76	3.95	3.62	4.59	4.01	3.90	4.34	5.17	3.22	4.05	3.09	3.61	3.19	2.91	2.95	3.43	3.23	2.93	3.83	4.30

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 varied over the past two years, ranging from a low of 2.91 to a high of 5.17. The ratio measures the company's degree of financial leverage and indicates the proportion of a company's assets that are financed by debt compared to equity. A higher ratio suggests that the company relies more on debt to finance its operations, while a lower ratio indicates a stronger equity position.

The trend in Dayforce Inc.'s financial leverage ratio indicates fluctuations in the company's capital structure. The ratio peaked at 5.17 in March 2022, suggesting a higher level of debt compared to equity at that time. Subsequently, the ratio decreased in the following quarters but remained above 3, indicating a continued reliance on debt financing.

It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio as it can impact the company's risk profile and financial stability. A higher ratio may signal higher financial risk due to increased debt obligations, while a lower ratio may indicate a more conservative financial position. Overall, analyzing the trend in the financial leverage ratio can provide insights into Dayforce Inc.'s capital structure and financial health.