Paycom Soft (PAYC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,690,500 | 1,374,390 | 1,054,600 | 839,422 | 735,275 |
| Property, plant and equipment | US$ in thousands | 498,197 | 402,448 | 348,953 | 285,218 | 238,458 |
| Fixed asset turnover | 3.39 | 3.42 | 3.02 | 2.94 | 3.08 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,690,500K ÷ $498,197K
= 3.39
The fixed asset turnover ratio for Paycom Software Inc has shown some fluctuations over the past five years. The ratio measures how efficiently the company utilizes its fixed assets to generate revenue.
From 2019 to 2020, there was a decrease in fixed asset turnover from 3.09 to 2.95, indicating a slight decrease in efficiency in utilizing fixed assets to generate revenue. However, from 2020 to 2021, there was an improvement as the ratio increased to 3.02.
In 2022, the fixed asset turnover ratio further improved to 3.42, indicating that the company was more efficient in generating revenue from its fixed assets. However, by the end of 2023, the ratio decreased slightly to 3.40, showing a minor decline in efficiency compared to the previous year.
Overall, despite some fluctuations, Paycom Software Inc has maintained a relatively strong fixed asset turnover ratio over the years, suggesting effective management and utilization of its fixed assets to generate revenue.
Peer comparison
Dec 31, 2023