Paycom Soft (PAYC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 83.66% | 84.52% | 84.65% | 85.28% | 85.07% |
| Operating profit margin | 26.70% | 27.55% | 24.04% | 22.17% | 30.77% |
| Pretax margin | 27.94% | 28.35% | 24.27% | 22.15% | 30.75% |
| Net profit margin | 20.16% | 20.47% | 18.58% | 17.09% | 24.56% |
Paycom Software Inc has demonstrated consistently high gross profit margins over the past five years, ranging from 86.79% to 88.38%. This indicates that the company is able to efficiently manage its production costs and generate significant profits from its core operations.
In terms of operating profit margin, Paycom has shown a slight fluctuation over the years, with a range of 22.12% to 30.67%. Although there was a dip in 2021, the company managed to improve its operating profit margin in the following years, suggesting effective cost management and operational efficiency.
The pretax margin of Paycom has also shown variability, ranging from 22.10% to 30.65%. This ratio reflects the company's ability to generate profits before accounting for taxes, indicating its capacity to withstand tax burdens while maintaining profitability.
Paycom's net profit margin has experienced some fluctuations as well, ranging from 17.05% to 24.47%. This ratio indicates the company's ability to convert revenue into profits after all expenses are deducted, including taxes. Despite the variability, the company has generally maintained healthy net profit margins over the years.
Overall, Paycom Software Inc has demonstrated strong profitability, as indicated by its consistently high gross profit margins and relatively stable operating, pretax, and net profit margins. The company's ability to efficiently manage costs and generate profits from its operations is a positive sign for investors and stakeholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.75% | 9.70% | 7.89% | 7.14% | 9.10% |
| Return on assets (ROA) | 8.12% | 7.21% | 6.09% | 5.50% | 7.26% |
| Return on total capital | 36.40% | 32.36% | 27.53% | 27.16% | 40.72% |
| Return on equity (ROE) | 26.15% | 23.79% | 21.93% | 21.88% | 34.29% |
Paycom Software Inc's profitability ratios have shown a generally positive trend over the past five years. The Operating return on assets (Operating ROA) has shown steady improvement, increasing from 7.14% in 2020 to 10.75% in 2023. This indicates that the company has been able to generate more operating income from its assets over time.
Return on assets (ROA) has also shown an upward trajectory, from 5.50% in 2020 to 8.12% in 2023. This ratio reflects the company's ability to generate profit from its total assets, and the increasing trend indicates improved efficiency in asset utilization.
Return on total capital has also been on the rise, reaching 34.64% in 2023 from 27.11% in 2020. This metric measures the overall return generated from both equity and debt capital invested in the company, showing that Paycom Software Inc has been able to generate significant returns on its invested capital.
Return on equity (ROE) has shown a similar positive trend, increasing from 21.88% in 2020 to 26.15% in 2023. This ratio indicates the company's ability to generate profit from shareholders' equity, highlighting the efficiency of the company in utilizing equity investments to generate earnings for its shareholders.
Overall, the improving trend in Paycom Software Inc's profitability ratios demonstrates the company's effective management of assets, capital, and equity to generate increasing returns for its investors.