Paycom Soft (PAYC)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	4,304,800	2,813,430	2,764,170	2,252,040	1,864,600
Total current liabilities	US$ in thousands	3,906,800	2,534,640	2,377,040	1,990,410	1,718,030
Current ratio		1.10	1.11	1.16	1.13	1.09

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,304,800K ÷ $3,906,800K
= 1.10

The current ratio of Paycom Soft has shown a relatively stable trend over the past five years. Starting at 1.09 on December 31, 2020, it increased to 1.13 by the end of 2021, further rising to 1.16 in 2022. However, there was a slight dip in the ratio to 1.11 by the end of 2023, followed by a marginal decrease to 1.10 as of December 31, 2024.

The current ratio measures a company's short-term liquidity by comparing its current assets to its current liabilities. A ratio above 1 indicates that the company has more current assets than current liabilities, which suggests a good ability to cover its short-term obligations. In the case of Paycom Soft, the current ratio has generally been above 1, indicating that the company has maintained a healthy liquidity position over the years.

Although there was a slight fluctuation in the current ratio, the overall trend suggests that Paycom Soft has managed its short-term financial obligations effectively. Investors and creditors may view this stable current ratio positively as it demonstrates the company's ability to meet its short-term liabilities with its current assets.