Paycom Soft (PAYC)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	276,290	212,741	161,886	123,546	109,747
Inventory	US$ in thousands	1,383	1,607	1,131	1,151	1,158
Inventory turnover		199.78	132.38	143.14	107.34	94.77

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $276,290K ÷ $1,383K
= 199.78

Paycom Software Inc's inventory turnover has shown a consistent upward trend over the past five years. The ratio increased from 77.15 in 2019 to 161.75 in 2023, indicating that the company is efficiently managing its inventory levels and turning them into sales more rapidly. This suggests that Paycom is effectively controlling its inventory costs and maintaining optimal levels to meet customer demand. The significant improvement in inventory turnover reflects strong operational efficiency and effective inventory management practices within the company. Overall, the increasing trend in inventory turnover is a positive sign of operational effectiveness and financial health for Paycom Software Inc.