Paycom Soft (PAYC)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.73 | 5.73 | 9.32 | 7.59 | 6.08 | 3.31 | 2.99 | 3.01 | 3.55 | 3.90 | 4.33 | 3.53 | 4.03 | 4.37 | 4.41 | 4.39 | 5.74 | 5.41 | 6.45 | 5.08 |
Based on the provided data, we can analyze the activity ratios of Paycom Soft as follows:
1. Inventory Turnover: This ratio indicates how many times the company's inventory is sold and replaced during a specific period. Paycom Soft's inventory turnover has fluctuated over the years, reaching its highest value of 311.81 on September 30, 2023, and its lowest value of 83.43 on June 30, 2020. A high inventory turnover ratio generally indicates efficient inventory management.
2. Receivables Turnover: The information for this ratio is not available in the provided data, indicating that receivables turnover is not calculated or disclosed by Paycom Soft. Receivables turnover measures how efficiently a company collects payments from its customers.
3. Payables Turnover: Similar to receivables turnover, data for payables turnover is not available. Payables turnover ratio assesses how quickly a company pays its suppliers for goods or services.
4. Working Capital Turnover: This ratio evaluates how efficiently a company utilizes its working capital to generate sales. Paycom Soft's working capital turnover has varied, with a peak of 9.32 on June 30, 2024, and a low of 2.99 on June 30, 2023. A higher working capital turnover ratio generally indicates effective utilization of resources to drive revenue.
In conclusion, although the data provided is limited, we can see fluctuations in some of Paycom Soft's activity ratios, which may reflect changes in the company's operational efficiency and financial management over the specified periods. A more comprehensive analysis incorporating additional financial metrics would provide a more nuanced understanding of Paycom Soft's activity performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.27 | 1.23 | 1.38 | 2.04 | 1.83 | 1.17 | 1.29 | 1.41 | 2.76 | 2.68 | 3.20 | 1.53 | 2.55 | 2.13 | 2.36 | 3.06 | 3.40 | 2.83 | 4.38 | 3.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data related to Paycom Soft's activity ratios, specifically the Days of Inventory on Hand (DOH), it is observed that there has been some fluctuation in the number of days the company holds inventory over the years. The DOH ranged from a low of 1.17 days on September 30, 2023, to a high of 4.38 days on June 30, 2020. Generally, a lower number of days of inventory on hand is considered favorable as it indicates efficient inventory management.
In contrast, the Days of Sales Outstanding (DSO) and Number of Days of Payables data are marked as not provided (—) for all the periods in the dataset. This lack of data limits the ability to assess the effectiveness of the company's accounts receivable collection and accounts payable management processes.
Overall, while the DOH data provides some insights into Paycom Soft's inventory management efficiency, a more comprehensive analysis incorporating DSO and payables days would be beneficial for a more holistic assessment of the company's working capital management.
See also:
Paycom Soft Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.32 | 0.52 | 0.41 | 0.37 | 0.40 | 0.42 | 0.39 | 0.35 | 0.35 | 0.39 | 0.25 | 0.21 | 0.33 | 0.24 | 0.29 | 0.26 | 0.32 | 0.33 | 0.41 | 0.34 |
Based on the provided data, Paycom Soft's long-term activity ratios have shown some fluctuations over the years.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue.
- Paycom Soft's Fixed Asset Turnover ratio has been gradually increasing from 3.07 in March 2020 to 3.42 in December 2022, indicating that the company has been more efficient in generating sales from its fixed assets during this period.
- There was a slight dip in the ratio in March 2023 and September 2023, but it picked up again in December 2023 and continued to increase up to 3.50 in March 2024.
- However, there is missing data for the Fixed Asset Turnover ratio from June 2023 onwards.
2. Total Asset Turnover:
- The Total Asset Turnover ratio measures how efficiently a company is using all its assets to generate revenue.
- Paycom Soft's Total Asset Turnover ratio has shown significant fluctuations, with a low of 0.21 in March 2022 and a high of 0.52 in September 2024.
- The ratio started at 0.34 in March 2020, decreased to 0.26 in March 2021, and then fluctuated before gradually increasing from March 2023 to December 2024.
- The ratio has generally improved over the years, indicating that the company is generating more revenue relative to its total assets.
In conclusion, Paycom Soft's long-term activity ratios suggest an improvement in asset utilization efficiency over the years, with fluctuations in the Total Asset Turnover ratio and a general increasing trend in the Fixed Asset Turnover ratio. The company should continue to monitor and optimize its asset utilization to maintain and enhance its overall performance.
See also:
Paycom Soft Long-term (Investment) Activity Ratios (Quarterly Data)