Paycom Soft (PAYC)
Quick ratio
| 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 | US$ in thousands | 402,000 | 325,757 | 346,456 | 371,325 | 294,025 | 484,028 | 536,545 | 505,590 | 400,730 | 317,163 | 279,039 | 360,594 | 277,978 | 230,926 | 202,362 | 215,093 | 151,710 | 156,398 | 113,518 | 181,827 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,906,800 | 1,659,680 | 2,526,880 | 2,942,310 | 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 |
| 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($402,000K
+ $—K
+ $—K)
÷ $3,906,800K
= 0.10
The quick ratio of Paycom Soft has fluctuated over the period analyzed. The quick ratio measures the company's ability to cover its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
From March 31, 2020, to December 31, 2021, Paycom Soft's quick ratio hovered around 0.1 to 0.14, suggesting a relatively low ability to cover its short-term liabilities with its liquid assets. In the period from March 31, 2022, to June 30, 2024, the company's quick ratio remained mostly below 0.2, indicating that its liquidity position did not improve significantly.
However, there was a notable increase in the quick ratio in the latter half of 2024, reaching 0.2 and 0.25 in the periods ending March 31 and June 30, respectively. This improvement suggests that Paycom Soft may have strengthened its ability to meet short-term obligations with its liquid assets during that period.
Overall, Paycom Soft's quick ratio has been relatively low, indicating a potential liquidity risk. Investors and stakeholders should monitor this ratio over time to assess the company's ability to manage its short-term liquidity position effectively.
Peer comparison
Dec 31, 2024