Paycom Soft (PAYC)

Quick 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
Cash	US$ in thousands	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	133,667	108,127	94,814	91,307
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	34,833	26,318	18,131	17,802	28,426	30,064	20,298	17,945	25,903	23,215	27,902	19,792	19,577	21,635	13,619	8,059	13,318	12,121	13,465	3,835
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
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

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 measures a company's ability to pay its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its short-term liabilities.

For Paycom Software Inc, the quick ratio has been relatively stable and consistently above 1 over the past eight quarters. This indicates that the company has maintained a strong ability to meet its short-term obligations using its current assets excluding inventory.

The slight fluctuations in the quick ratio from quarter to quarter may be attributed to changes in the company's current assets and liabilities composition. Overall, the company's quick ratio demonstrates a healthy liquidity position, which is important for meeting financial obligations and potential unexpected expenses in the short term.