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Dayforce (Dayforce) Interest Coverage : 3.06 (As of Mar. 2024)


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What is Dayforce Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Dayforce's Operating Income for the three months ended in Mar. 2024 was $41 Mil. Dayforce's Interest Expense for the three months ended in Mar. 2024 was $-13 Mil. Dayforce's interest coverage for the quarter that ended in Mar. 2024 was 3.06. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dayforce's Interest Coverage or its related term are showing as below:

DAY' s Interest Coverage Range Over the Past 10 Years
Min: 0.31   Med: 0.66   Max: 3.69
Current: 3.37


DAY's Interest Coverage is ranked worse than
84.18% of 1606 companies
in the Software industry
Industry Median: 28.9 vs DAY: 3.37

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Dayforce Interest Coverage Historical Data

The historical data trend for Dayforce's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Dayforce Interest Coverage Chart

Dayforce Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 2.23 0.31 - - 3.69

Dayforce Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.17 3.23 2.98 4.36 3.06

Competitive Comparison of Dayforce's Interest Coverage

For the Software - Application subindustry, Dayforce's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Dayforce's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Dayforce's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dayforce's Interest Coverage falls into.



Dayforce Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Dayforce's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Dayforce's Interest Expense was $-36 Mil. Its Operating Income was $133 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,229 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*133.1/-36.1
=3.69

Dayforce's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Dayforce's Interest Expense was $-13 Mil. Its Operating Income was $41 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,227 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*40.7/-13.3
=3.06

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Dayforce  (NYSE:DAY) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Dayforce Interest Coverage Related Terms

Thank you for viewing the detailed overview of Dayforce's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Dayforce (Dayforce) Business Description

Traded in Other Exchanges
Address
3311 East Old Shakopee Road, Minneapolis, MN, USA, 55425
Ceridian HCM provides payroll and human capital management solutions targeting clients with 100-100,000 employees. Following the 2012 acquisition of Dayforce, Ceridian pivoted away from its legacy on-premises Bureau business to become a cloud HCM provider. As of fiscal 2022, about 80% of group revenue was derived from the flagship Dayforce platform geared toward enterprise clients. The remaining revenue is about evenly split between cloud platform Powerpay, targeting small businesses in Canada, and legacy Bureau products.
Executives
Noemie Clemence Heuland officer: EVP, CFO C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD, MINNEAPOLIS MN 55425
Leagh Erin Turner officer: President 228 DOUGLAS DRIVE, TORONTO A6 M4W 2C1
Stephen H. Holdridge officer: EVP, Chief Customer Officer MICROSTRATEGY INCORPORATED, 1850 TOWERS CRESCENT PLAZA, TYSONS CORNER VA 22182
Joseph B Korngiebel officer: EVP, CPTO C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD, MINNEAPOLIS MN 55425
William Everett Mcdonald officer: EVP, GC & Corporate Secretary C/O CERIDIAN HCM HOLDINGS INC., 3311 EAST OLD SHAKOPEE ROAD, MINNEAPOLIS MN 55425-1361
Samer Alkharrat officer: EVP, Chief Revenue Officer 1300 SEAPORT BLVD, SUITE 500, REDWOOD CITY CA 94063
Christopher R Armstrong officer: EVP, Chief Customer Officer C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD, MINNEAPOLIS MN 55425
Jeffrey Scott Jacobs officer: Head of Acct & Fin Reporting C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD, MINNEAPOLIS MN 55425
Rakesh Subramanian officer: EVP, Chief Revenue Officer C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD, MINNEAPOLIS MN 55425
David D Ossip director, officer: Chairman and CEO C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD, MINNEAPOLIS MN 55425
Thomas M Hagerty director C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, 35 FLOOR, BOSTON MA 02110
Gerald C Throop director C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD, MINNEAPOLIS MN 55425
Cannae Holdings, Inc. director, 10 percent owner C/O CANNAE HOLDINGS, INC., 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Scott A Kitching officer: EVP, GC & Assistant Secretary C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD, MINNEAPOLIS MN 55425
Thl Equity Fund Vi Investors (ceridian) V, Llc director, 10 percent owner C/O THOMAS H LEE PARTNERS, L.P., 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110