Dayforce Inc. (DAY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.12 | 0.10 | 0.09 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.26 | 0.27 | 0.28 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.36 | 0.38 | 0.39 |
| 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 |
Dayforce Inc. has consistently maintained a low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, all at 0.00 throughout the periods analyzed. This indicates that the company has not relied heavily on debt to finance its operations and has a strong solvency position in terms of its capital structure.
However, the financial leverage ratio of Dayforce Inc. has shown some fluctuations over the periods, ranging from 2.91 to 5.17. While the ratio has generally been above 3, signifying that the company has a moderate level of financial leverage, the variability suggests changes in the company's capital structure and potential risks associated with higher leverage levels.
Overall, Dayforce Inc. appears to have a stable and conservative solvency position based on the low debt ratios, although the fluctuations in the financial leverage ratio may warrant further examination of the company's capital structure and risk management strategies.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.66 | 2.62 | 1.83 | 0.68 | -1.20 | -1.34 | -1.53 | -1.83 | -1.52 | -2.44 | -2.11 | -1.08 | 0.20 | 1.72 | 1.79 | 2.12 | 2.06 | 1.67 | 1.83 | 0.40 |
The interest coverage ratio measures a company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio indicates a company is more capable of covering its interest expenses.
Examining Dayforce Inc.'s interest coverage over the past years, we observe fluctuations in the ratio. In the most recent quarter, as of December 31, 2023, the interest coverage ratio stands at 3.66, indicating that the company generated operating income 3.66 times larger than its interest expenses. This suggests a healthy ability to meet interest obligations.
However, analyzing the trend, we see a significant improvement in interest coverage from negative figures in the past years (e.g., September 30, 2022, and prior). This could signify an enhanced financial position, potentially attributed to improved operating performance or lower interest expenses.
Overall, Dayforce Inc. has demonstrated progress in its interest coverage ratio, moving from negative values in recent years to positive levels, as of the most recent quarter. This improvement bodes well for the company's financial health and ability to meet its interest payments.