Paycom Soft (PAYC)

Receivables 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
Revenue (ttm)	US$ in thousands	1,691,704	1,627,240	1,554,308	1,470,341	1,373,921	1,289,146	1,211,791	1,137,067	1,054,755	990,668	931,006	870,744	841,015	813,477	792,091	779,562	736,337	693,260	651,802	611,547
Receivables	US$ in thousands	34,833	26,318	18,131	17,802	28,426	30,064	20,298	17,945	25,903	23,215	27,902	19,792	19,577	21,635	13,619	8,059	13,318	12,121	13,465	3,835
Receivables turnover		48.57	61.83	85.73	82.59	48.33	42.88	59.70	63.36	40.72	42.67	33.37	43.99	42.96	37.60	58.16	96.73	55.29	57.19	48.41	159.46

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,691,704K ÷ $34,833K
= 48.57

Paycom Software Inc's receivables turnover has shown fluctuations over the past eight quarters. The company's receivables turnover ratio stood at 48.62 in Q4 2023, decreased to 42.90 in Q3 2022, and ranged between 48.38 and 85.91 in the other quarters. Overall, the company collects its accounts receivable approximately 1.5 to 3.5 times a year on average, indicating a relatively efficient collection process. The significant variations in the receivables turnover ratio may suggest changes in the company's credit policies, customer base, or industry conditions that impact the speed of receivables collection. It would be important for stakeholders to further investigate the underlying reasons for these fluctuations to assess the effectiveness of Paycom Software Inc's credit and collection management practices.