Paycom Soft (PAYC)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	109,747	105,051	100,784	96,476
Payables	US$ in thousands	13,875	6,889	8,485	10,036	16,054	10,211	13,475	12,192	5,772	9,441	9,220	12,133	6,787	9,237	3,667	5,694	5,051	4,693	3,622	4,081
Payables turnover		19.91	37.84	29.09	22.87	13.25	19.61	13.93	14.28	28.05	15.72	14.82	10.70	18.20	12.92	31.30	19.40	21.73	22.38	27.83	23.64

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $276,290K ÷ $13,875K
= 19.91

Payables turnover is an important financial ratio that indicates how efficiently a company is managing its accounts payable by paying off its suppliers. The payables turnover ratio is calculated by dividing the total purchases made on credit by the average accounts payable balance for a period.

Analyzing the payables turnover figures for Paycom Software Inc from Q1 2022 to Q4 2023, we can observe some fluctuations in the ratio over the quarters. The payables turnover ratio ranged from a low of 10.58 in Q4 2022 to a high of 30.61 in Q3 2023.

A higher payables turnover ratio generally indicates that the company is paying off its suppliers more frequently, which can be a positive sign of efficient management of working capital. On the other hand, a lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships or indicate cash flow issues.

Overall, the trend in Paycom Software Inc's payables turnover ratio shows variability over the quarters, with some quarters exhibiting higher turnover and others lower. It would be important to further investigate the reasons behind these fluctuations to assess the company's financial management practices and relationship with suppliers.