Paycom Soft (PAYC)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,883,127	1,823,922	1,778,291	1,741,918	1,693,674	1,629,687	1,557,551	1,473,336	1,375,218	1,289,596	1,211,623	1,136,845	1,055,524	991,485	931,823	871,264	841,434	813,896	792,370	780,096
Property, plant and equipment	US$ in thousands	—	—	—	—	—	468,282	—	421,017	402,448	383,860	374,940	362,505	348,953	329,296	320,997	301,579	285,218	275,624	266,831	254,423
Fixed asset turnover		—	—	—	—	—	3.48	—	3.50	3.42	3.36	3.23	3.14	3.02	3.01	2.90	2.89	2.95	2.95	2.97	3.07

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,883,127K ÷ $—K
= —

The fixed asset turnover ratio of Paycom Soft has shown a generally positive trend over the past few years, indicating the company's ability to generate revenue from its investment in fixed assets. The ratio has increased steadily from 3.07 as of March 31, 2020, to 3.48 as of September 30, 2023. This suggests that the company has been able to efficiently utilize its fixed assets to generate sales.

However, it is important to note that the ratio remained flat at 3.48 from September 30, 2023, to December 31, 2023, and has not been reported for the subsequent periods up to December 31, 2024. This may indicate a potential slowdown in the company's ability to generate sales from its fixed assets or could be reflective of other strategic changes within the business.

Overall, a fixed asset turnover ratio above 3 indicates that Paycom Soft is effectively using its fixed assets to generate revenue. It is essential for the company to continue monitoring and optimizing its fixed asset utilization to ensure sustainable growth and profitability in the future.