Paycom Soft (PAYC)
Payables 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 |
| Payables | US$ in thousands | 13,875 | 16,054 | 5,772 | 6,787 | 5,051 |
| Payables turnover | 19.91 | 13.25 | 28.05 | 18.20 | 21.73 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $276,290K ÷ $13,875K
= 19.91
Paycom Software Inc's payables turnover ratio has fluctuated over the past five years. The ratio was highest in 2021 at 22.60, indicating that the company was able to pay off its accounts payable 22.60 times during the year. In 2023, the payables turnover ratio decreased to 16.12, reflecting a slower rate of paying off suppliers compared to the previous year.
While a high turnover ratio generally indicates that a company is efficiently managing its accounts payable, it's important to consider industry norms and company-specific factors when interpreting these ratios. A decreasing trend in the payables turnover ratio could suggest a change in payment policies or vendor relationships. Further analysis would be needed to understand the reasons behind these fluctuations and their implications for Paycom Software Inc's financial performance and working capital management.
Peer comparison
Dec 31, 2023