Dayforce Inc. (DAY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.00 | 0.00 | 0.00 |
| 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 | 0.00 | 0.00 | 0.00 |
| 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 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Dayforce Inc. indicate strong financial health with consistently low levels of debt relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 for each reporting period from March 31, 2020, to December 31, 2024. This suggests that the company has been operating without relying on significant debt to finance its operations or expansion.
The Financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, has shown fluctuation over the same period. While the ratio peaked at 5.17 on March 31, 2022, it has generally been maintained at moderate levels below 5. This indicates that Dayforce Inc. has been managing its debt levels effectively, maintaining a healthy balance between debt and equity in its capital structure.
Overall, the consistent low debt ratios and moderate financial leverage ratio demonstrate Dayforce Inc.'s sound solvency position and prudent financial management practices, reflecting a low risk of financial distress and a stable foundation for long-term growth and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.94 | 2.37 | 2.23 | 2.76 | 3.26 | 1.95 | 1.14 | -0.06 | -2.06 | -1.34 | -1.53 | -1.83 | -1.52 | -2.44 | -2.11 | -1.08 | 0.20 | 1.89 | 1.95 | 2.28 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a better ability to cover interest payments from operating earnings.
Analyzing the interest coverage of Dayforce Inc. over the provided periods, we observe fluctuations. As of March 31, 2020, the interest coverage ratio was 2.28, indicating that the company's operating earnings were 2.28 times its interest obligations. However, this ratio declined to 0.20 by December 31, 2020, suggesting a significant deterioration in the company's ability to cover interest payments.
From March 31, 2021, to September 30, 2022, the interest coverage ratios were consistently negative, indicating that the company's operating earnings were insufficient to cover its interest expenses during these periods. This raises concerns about Dayforce Inc.'s financial health and its ability to service its debt obligations.
However, starting from March 31, 2023, the interest coverage turned positive, indicating an improvement in the company's ability to cover its interest payments. The ratio gradually increased over the subsequent periods, reaching a ratio of 2.37 by September 30, 2024.
Overall, the analysis of Dayforce Inc.'s interest coverage reveals fluctuations in the company's ability to cover its interest obligations, with periods of both strength and weakness. Investors and stakeholders should continue to monitor this ratio to assess the company's financial stability and debt servicing capabilities.