Interest Coverage Ratio: 4.55x
Is the interest coverage ratio high or low?
The interest coverage ratio of 4.55x is 347% above its 5-year average of 1.02x, near the high end of its 5-year range (-7.08x–5.96x).
As of Thursday, June 25, 2026. 10.23% above its 12-month average of 4.13x.
DAY Interest Coverage Ratio
Reported quarterly interest coverage; no daily interpolation.
DAY Average Interest Coverage Ratio Chart
DAY Current vs Average Interest Coverage Ratio Chart
DAY Interest Coverage Ratio Metrics
INTEREST COVERAGE RATIO
4.55x
INTEREST COVERAGE RATIO AVG TTM
4.13x
INTEREST COVERAGE RATIO AVG 3Y
3.34x
INTEREST COVERAGE RATIO AVG 5Y
1.02x
INTEREST COVERAGE RATIO AVG 10Y
N/A
INTEREST COVERAGE RATIO AVG 15Y
N/A
INTEREST COVERAGE RATIO AVG 20Y
N/A
CURRENT VS TTM AVG
+10.23%
CURRENT VS 3Y AVG
+36.22%
CURRENT VS 5Y AVG
+346.86%
CURRENT VS 10Y AVG
N/A
CURRENT VS 15Y AVG
N/A
CURRENT VS 20Y AVG
N/A
DAY Competitors' Interest Coverage Ratio
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Dayforce Inc (DAY) | $11.18B | 4.55x | 4.13x | 3.34x | 1.02x |
| Applied Optoelectronics, Inc. (AAOI)vs › | $11.12B | -15.61x | 57.38x | 35.93x | 28.77x |
| Silicon Motion Technology Corporation (SIMO)vs › | $11.00B | N/A | 3013.03x | 13396.51x | 6831.63x |
| Zebra Technologies Corporation (ZBRA)vs › | $11.59B | 7.41x | 6.58x | 6.40x | 38.33x |
| FormFactor, Inc. (FORM)vs › | $11.60B | 123.26x | 139.12x | 142.41x | 138.25x |
| Unity Software Inc. (U)vs › | $11.66B | -17.60x | N/A | N/A | N/A |
| Applied Digital Corp. (APLD)vs › | $11.70B | -4.05x | N/A | N/A | N/A |
| Trimble Inc. (TRMB)vs › | $11.71B | 8.17x | 6.63x | 5.35x | 6.36x |
| Dynatrace, Inc. (DT)vs › | $11.74B | N/A | 17.61x | 13.89x | 13.89x |
| Skyworks Solutions, Inc. (SWKS)vs › | $10.52B | 18.45x | 18.45x | 18.89x | 41.78x |
Financial Health Indicators
Interest Coverage
4.6x
Debt/Equity
0.48
Current Ratio
1.13
Formula: Interest Coverage = EBIT / Interest Expense
Reference ranges:
- < 1.5x: EBIT is less than 1.5 times interest expense
- 1.5x - 3x: EBIT is between 1.5 and 3 times interest expense
- 3x - 5x: EBIT is between 3 and 5 times interest expense
- > 5x: EBIT is more than 5 times interest expense
Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.
Interest Coverage Ratio Formula & Definition
Interest Coverage = EBIT / Interest Expense
The interest coverage ratio measures operating earnings relative to interest expense.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Interest Coverage Ratio FAQ
- What is the interest coverage ratio for Dayforce Inc (DAY)?
- The interest coverage ratio for DAY stock is 4.55x.
- Is Dayforce Inc's interest coverage ratio high or low?
- The interest coverage ratio of 4.55x is 347% above its 5-year average of 1.02x, near the high end of its 5-year range (-7.08x–5.96x).
- What is the TTM average interest coverage ratio for Dayforce Inc (DAY)?
- The TTM average interest coverage ratio for DAY stock is 4.13x.
- What is the 3Y average interest coverage ratio for Dayforce Inc (DAY)?
- The 3Y average interest coverage ratio for DAY stock is 3.34x.
- What is the 5Y average interest coverage ratio for Dayforce Inc (DAY)?
- The 5Y average interest coverage ratio for DAY stock is 1.02x.
DAY Interest Coverage Ratio History
| DATE | INTEREST COVERAGE RATIO |
|---|---|
| 2025-09-30 | 4.55x |
| 2025-06-30 | 5.96x |
| 2025-03-31 | 3.92x |
| 2024-12-31 | 3.85x |
| 2024-09-30 | 2.36x |
| 2024-06-30 | 1.27x |
| 2024-03-31 | 3.06x |
| 2023-12-31 | 4.36x |
| 2023-09-30 | 2.98x |
| 2023-06-30 | 3.23x |
| 2023-03-31 | 4.17x |
| 2022-12-31 | 0.38x |
| 2022-09-30 | -0.50x |
| 2022-06-30 | -0.97x |
| 2022-03-31 | -3.26x |
| 2021-12-31 | -7.08x |
| 2021-09-30 | -1.60x |
| 2021-06-30 | -1.99x |
| 2021-03-31 | 0.43x |
| 2020-12-31 | -3.84x |
| 2020-09-30 | 0.10x |
| 2020-06-30 | 0.61x |
| 2020-03-31 | 3.81x |
| 2019-12-31 | 17.35x |
| 2019-09-30 | 0.83x |
| 2019-06-30 | 2.20x |
| 2019-03-31 | 3.08x |
| 2018-12-31 | 2.44x |
| 2018-09-30 | -1.84x |
| 2018-06-30 | -0.19x |
| 2018-03-31 | 1.26x |
| 2017-12-31 | 1.06x |
| 2017-09-30 | 0.23x |
| 2017-06-30 | 0.04x |
| 2017-03-31 | 0.57x |
About Dayforce Inc
Dayforce Inc. operates as a leading software provider focused on human capital management (HCM) solutions, serving businesses throughout the United States, Canada, and other international markets. The company's primary offering is its cloud-based Dayforce platform, which seamlessly integrates various functions such as human resources, payroll processing, benefits administration, workforce scheduling and management, and talent development. For the small business segment, Dayforce Inc. provides Powerpay, a distinct cloud HR and payroll system. Additionally, it offers Bureau solutions for comprehensive payroll and related administrative services. The company distributes its solutions via a dedicated direct sales team and through collaborations with third-party channels. Established in 2013 and based in Minneapolis, Minnesota, the organization rebranded from Ceridian HCM Holding Inc. to Dayforce Inc. in February 2024.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- Stephen H. Holdridge