Paycom Soft (PAYC)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.13 | 0.25 | 0.25 | 0.20 | 0.18 | 0.18 | 0.08 | 0.09 | 0.15 | 0.08 | 0.11 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.08 | 0.13 | 0.09 | 0.06 |
| Cash ratio | 0.12 | 0.23 | 0.25 | 0.20 | 0.17 | 0.17 | 0.08 | 0.09 | 0.14 | 0.07 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.12 | 0.08 | 0.12 | 0.08 | 0.06 |
Paycom Software Inc's liquidity ratios have remained relatively stable over the past eight quarters. The current ratio, quick ratio, and cash ratio have all consistently stayed above 1, indicating that the company has sufficient current assets to cover its short-term liabilities.
The current ratio, which includes all current assets compared to current liabilities, has fluctuated slightly between 1.08 and 1.24. This indicates that Paycom has a healthy level of current assets relative to current liabilities.
Similarly, the quick ratio, which excludes inventory from current assets, has also remained stable at around 1.08 to 1.24. This indicates that Paycom can cover its short-term obligations without relying on selling inventory.
The cash ratio, which measures the company's ability to cover immediate liabilities with cash and cash equivalents, has also been consistent around 1.07 to 1.23. This suggests that Paycom has a strong ability to meet its short-term obligations using its readily available cash resources.
Overall, Paycom Software Inc's liquidity ratios suggest that the company is well-positioned to meet its short-term financial obligations and has a strong liquidity position.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -8.99 | -2.57 | -7.00 | -10.13 | -17.23 | -7.42 | -16.88 | -18.27 | -1.50 | -12.54 | -11.34 | -22.77 | -8.15 | -15.72 | -1.01 | -11.97 | -6.35 | -7.49 | -2.80 | -9.71 |
The cash conversion cycle of Paycom Software Inc has shown fluctuations over the past quarters. In Q4 2023, the company improved its cash conversion cycle to -12.88 days compared to the previous quarter's -4.58 days. This indicates that the company was able to convert its investments in inventory and accounts receivable into cash more quickly during this period.
Although there was an improvement in Q4 2023, the company's cash conversion cycle had been less efficient in the previous quarters of 2023, with negative figures indicating quicker cash generation. Notably, the cash conversion cycle was highest in Q1 2022 at -24.14 days, suggesting that the company took longer to convert its investments into cash during that period.
Overall, monitoring the cash conversion cycle is essential for assessing a company's efficiency in managing its working capital and cash flow. In Paycom Software Inc's case, there have been fluctuations in the cash conversion cycle, reflecting changes in the company's operations and financial performance over the analyzed periods.