Paycom Soft (PAYC)
Liquidity 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.10 | 1.19 | 1.08 | 1.08 | 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 |
| Quick ratio | 0.10 | 0.20 | 0.14 | 0.13 | 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 |
| Cash ratio | 0.10 | 0.20 | 0.14 | 0.13 | 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 |
Paycom Soft's liquidity ratios indicate the company's ability to meet its short-term obligations.
1. Current Ratio:
- The company's current ratio has been relatively stable over the years, ranging from 1.07 to 1.24.
- A current ratio above 1 signifies that the company has more current assets than current liabilities, indicating a good ability to meet short-term obligations.
- The company's current ratio has generally remained above 1, indicating sound liquidity position.
2. Quick Ratio:
- The quick ratio, which measures the company's ability to meet short-term obligations without relying on inventory, has shown some fluctuations.
- The quick ratio ranged from 0.07 to 0.25, with higher values indicating a stronger ability to cover immediate liabilities.
- Despite some fluctuations, the quick ratio has generally shown improvement over the years, indicating better liquidity management.
3. Cash Ratio:
- The cash ratio measures the company's ability to cover its current liabilities with cash and cash equivalents.
- The cash ratio ranged from 0.07 to 0.25, showing the company's ability to meet short-term obligations with readily available cash.
- Similar to the quick ratio, the cash ratio has generally improved over the years, indicating a stronger liquidity position.
Overall, Paycom Soft's liquidity ratios suggest that the company has maintained a sound liquidity position over the years, with the ability to meet its short-term obligations using current assets and cash reserves.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | 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 |
The cash conversion cycle of Paycom Soft has shown fluctuations over the periods analyzed. The company's cash conversion cycle decreased from 3.07 days on March 31, 2020, to 1.27 days on December 31, 2024. This indicates that the company is becoming more efficient in managing its cash flows.
During this period, there were fluctuations in the cash conversion cycle, with some periods showing an increase while others showing a decrease. For example, there was a peak at 4.38 days on June 30, 2020, followed by a significant decrease to 1.17 days on September 30, 2023.
Overall, a lower cash conversion cycle indicates that the company is able to convert its investments in inventory and accounts receivable into cash more quickly. This can be a positive sign as it implies better liquidity and efficiency in operating its business. Paycom Soft should continue to monitor and potentially improve its cash conversion cycle to ensure optimal utilization of its resources.