Dayforce Inc. (DAY)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	9,117,000	8,117,000	9,046,100	10,775,200	9,010,900	8,943,200	8,118,800	10,061,500	7,917,200	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
Total stockholders’ equity	US$ in thousands	2,546,300	2,556,000	2,475,800	2,432,800	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
Financial leverage ratio		3.58	3.18	3.65	4.43	3.76	3.95	3.62	4.59	3.75	3.90	4.34	5.17	3.22	4.05	3.09	3.61	3.19	2.91	2.95	3.43

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 fluctuated over the past few years, ranging from a low of 2.91 in September 2020 to a high of 5.17 in March 2022. This ratio measures the company's reliance on debt financing versus equity to fund its operations and growth. A higher financial leverage ratio indicates a greater proportion of debt in the company's capital structure, which can potentially lead to higher financial risk.

It is important to note that a financial leverage ratio above 3 or 4 may signal that the company is highly leveraged, meaning it has a significant amount of debt compared to equity. This could increase the company's vulnerability to economic downturns or interest rate changes. Conversely, a low financial leverage ratio suggests a more conservative capital structure with a lower level of debt.

Overall, Dayforce Inc. experienced fluctuations in its financial leverage ratio over the period analyzed, demonstrating varying levels of debt usage. Investors and analysts should closely monitor changes in this ratio to assess the company's financial health and risk profile.