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 Sep. 2025 was $31 Mil. Dayforce's Interest Expense for the
three
months ended in Sep. 2025 was $-7 Mil.
Dayforce's interest coverage for the quarter that ended in Sep. 2025 was 4.55.
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: 0.67 Max: 4.55
Current: 4.55
DAY's Interest Coverage is not ranked
in the Software industry.
Industry Median: 24.695
vs DAY: 4.55
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
Dayforce Interest Coverage Historical Data
* Premium members only.
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.
DAY vs DOCU, MANH, BSY: Interest Coverage Comparison
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 Interest Coverage vs 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.
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:
* 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.
Dayforce (DAY) has a Interest Coverage of 4.55 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dayforce and its competitors. This is 579% above median its historical median of 0.67. Over the past decade, Dayforce's Interest Coverage has ranged from 0.31 to 4.55.
Is Dayforce's Interest Coverage too high?
Dayforce's current Interest Coverage of 4.55 is 579% above median its 10-year median of 0.67. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 4.55. The Software industry median Interest Coverage is 24.70. Dayforce's value of 4.55 is 81.6% below this industry median. Overall, Dayforce has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Dayforce's Interest Coverage compare to DOCU and MANH?
Dayforce's Interest Coverage of 4.55 can be compared against companies in the Software industry. The industry median Interest Coverage is 24.70. Dayforce's value of 4.55 is 81.6% below this benchmark. Historically, Dayforce's own Interest Coverage has ranged from 0.31 to 4.55 over the past decade. While the company's 10-year median is 0.67 vs. the industry median of 24.70, Dayforce has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.70, based on 1,706 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dayforce's current Interest Coverage of 4.55 is 81.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dayforce and its competitors. For the Software industry, the median Interest Coverage is 24.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dayforce's current Interest Coverage is 4.55, which is 579% above median its own 10-year median of 0.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dayforce stock overvalued right now?
Dayforce (DAY) has a current Interest Coverage of 4.55. The stock's GF Value™ is $86.76, compared to a current price of $69.86 — trading 19.5% below its estimated fair value. The current Interest Coverage is 4.55, which is 579% above median its 10-year median of 0.67 and 81.6% below the Software industry median of 24.70. Dayforce's overall GF Score™ is 67/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Dayforce (DAY), the current Interest Coverage is 4.55 as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dayforce (DAY) Overvalued in 2026?
Based on GuruFocus' analysis, Dayforce stock appears to be undervalued.
The current stock price of $69.86 is trading 19.5% below its estimated GF Value™ of $86.76.
Key valuation signals for DAY:
Interest Coverage: 4.55 (579% above median its 10-year median of 0.67)
GF Value™: $86.76 vs. price of $69.86 (19.5% below fair value)
Industry Position: 81.6% below the Software median
No single metric tells the full story. See the DAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dayforce is a global technology company providing cloud-based human capital management solutions for large businesses looking to manage their payroll, tax, benefits, and talent intelligence. The company primarily services customers in the US with its flagship Dayforce platform but also services customers in select European countries as well as Australia and New Zealand. Dayforce services the Canadian HCM market with its Powerpay platform, which specifically targets customers with less than 100 employees. As of fiscal 2024, the Dayforce platform accounted for almost 80% of companywide revenue and had 6,876 clients representing approximately 7.62 million employees.
67GF Score
Get the complete analysis for DAY
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