Paycom Soft (PAYC)

Current ratio

		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
Total current assets	US$ in thousands	2,813,430	2,562,970	2,708,190	3,054,690	2,764,170	2,228,360	3,847,990	4,434,300	2,252,040	3,313,180	2,356,520	2,624,210	1,864,600	1,778,320	1,240,060	1,651,560	1,871,100	1,012,980	1,287,990	1,549,480
Total current liabilities	US$ in thousands	2,534,640	2,069,910	2,186,730	2,565,100	2,377,040	1,897,760	3,568,470	4,112,530	1,990,410	3,086,270	2,145,210	2,425,570	1,718,030	1,627,800	1,117,250	1,497,920	1,753,520	918,478	1,201,280	1,483,710
Current ratio		1.11	1.24	1.24	1.19	1.16	1.17	1.08	1.08	1.13	1.07	1.10	1.08	1.09	1.09	1.11	1.10	1.07	1.10	1.07	1.04

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,813,430K ÷ $2,534,640K
= 1.11

Paycom Software Inc's current ratio has shown some fluctuations over the past eight quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.

In Q4 2023, the current ratio decreased to 1.11 from the previous quarter's 1.24. This may indicate a slight decline in the company's liquidity compared to the previous quarter.

Looking at the trend over the past year, the current ratio has generally been above 1, which suggests that Paycom Software Inc has had enough current assets to cover its short-term obligations.

It's worth noting that the current ratio peaked at 1.24 in Q3 and Q2 2023, which may indicate improved short-term liquidity during those periods.

Overall, while the current ratio has shown some fluctuations, it remains above 1, indicating that Paycom Software Inc has generally maintained a healthy level of liquidity to meet its short-term financial obligations.