Paycom Soft (PAYC)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	402,476	393,433	374,021	322,576	276,290	260,672	246,835	229,489	212,741	200,193	187,769	174,097	161,886	148,393	136,625	129,773	123,546	119,314	114,794	110,475
Inventory	US$ in thousands	1,400	1,331	1,415	1,807	1,383	836	874	887	1,607	1,471	1,647	732	1,131	866	882	1,088	1,151	924	1,376	930
Inventory turnover		287.48	295.59	264.33	178.51	199.78	311.81	282.42	258.72	132.38	136.09	114.01	237.84	143.14	171.35	154.90	119.28	107.34	129.13	83.43	118.79

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $402,476K ÷ $1,400K
= 287.48

Paycom Soft's inventory turnover has shown fluctuations over the years, indicating changes in its efficiency in managing inventory levels. The inventory turnover ratio measures how many times the company's inventory is sold and replaced within a given period.

The data reveals that from March 31, 2020, to December 31, 2024, Paycom Soft's inventory turnover ranged from a low of 83.43 to a high of 311.81. This variability indicates changes in the company's ability to convert inventory into sales during different quarters.

A higher inventory turnover ratio, such as the peak of 311.81 on September 30, 2023, suggests that Paycom Soft is effectively managing its inventory levels by quickly selling and replenishing stock. On the other hand, lower ratios, like the 83.43 on June 30, 2020, may indicate inefficiencies in inventory management or potential overstocking.

Overall, analyzing Paycom Soft's inventory turnover can provide insights into the company's operational efficiency, sales trends, and inventory management strategies, which are essential factors for assessing its financial health and performance.