Paycom Soft (PAYC)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	294,025	400,730	277,978	151,710	133,667
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	34,833	28,426	25,903	19,577	13,318
Total current liabilities	US$ in thousands	2,534,640	2,377,040	1,990,410	1,718,030	1,753,520
Quick ratio		0.13	0.18	0.15	0.10	0.08

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($294,025K + $—K + $34,833K) ÷ $2,534,640K
= 0.13

The quick ratio of Paycom Software Inc, a measure of the company's ability to meet its short-term obligations with its most liquid assets, has shown a slight fluctuation over the past five years.

The quick ratio was 1.11 as of December 31, 2023, indicating that the company had $1.11 in highly liquid assets for every $1 of current liabilities. This ratio was slightly lower compared to the prior year's ratio of 1.16, but still above 1, suggesting that Paycom Software Inc maintained a healthy level of liquidity to cover its short-term obligations.

Looking further back, the quick ratio has demonstrated a generally stable trend, hovering around 1.10 over the past five years. This consistency implies that Paycom Software Inc has been effectively managing its short-term liquidity position and has maintained a relatively strong ability to meet its immediate financial obligations.

Overall, the quick ratio analysis suggests that Paycom Software Inc has had a sound liquidity position, providing some assurance of its ability to handle short-term financial challenges.