Paycom Soft (PAYC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 82.23% | 83.69% | 84.53% | 84.66% | 85.32% |
| Operating profit margin | 33.68% | 26.65% | 27.54% | 24.02% | 22.12% |
| Pretax margin | 34.46% | 27.89% | 28.33% | 24.25% | 22.10% |
| Net profit margin | 26.66% | 20.12% | 20.46% | 18.57% | 17.05% |
Paycom Soft's profitability ratios show a consistent and positive trend over the years.
- The Gross Profit Margin has slightly decreased from 85.32% in 2020 to 82.23% in 2024, indicating a slight decline in the efficiency of production and management of direct costs.
- The Operating Profit Margin has shown a steady and significant increase from 22.12% in 2020 to 33.68% in 2024, reflecting improvements in operational efficiency and cost management.
- The Pretax Margin has also displayed a consistent upward trend, rising from 22.10% in 2020 to 34.46% in 2024, suggesting effective management of operating expenses and taxes.
- The Net Profit Margin has experienced steady growth, increasing from 17.05% in 2020 to 26.66% in 2024, indicating the company's ability to control costs and generate higher profits relative to its revenue.
Overall, Paycom Soft has shown improvement in its profitability ratios, with increasing margins over the years, demonstrating efficient operations and sound financial management.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.82% | 10.75% | 9.70% | 7.89% | 7.14% |
| Return on assets (ROA) | 8.57% | 8.12% | 7.21% | 6.09% | 5.50% |
| Return on total capital | 41.40% | 34.59% | 20.72% | 16.68% | 28.36% |
| Return on equity (ROE) | 31.85% | 26.15% | 23.79% | 21.93% | 21.88% |
Paycom Soft's profitability ratios show a positive trend over the years, reflecting strong financial performance. The Operating return on assets (Operating ROA) increased from 7.14% in 2020 to 10.82% in 2024, indicating the company's efficiency in generating profits from its operations. Similarly, the Return on assets (ROA) improved from 5.50% in 2020 to 8.57% in 2024, demonstrating effective asset utilization to generate returns.
The Return on total capital also exhibited a positive trend, rising from 28.36% in 2020 to 41.40% in 2024, indicating the company's ability to generate returns for both equity and debt providers. Additionally, the Return on equity (ROE) increased from 21.88% in 2020 to 31.85% in 2024, showing the company's ability to generate returns for its shareholders.
Overall, Paycom Soft's profitability ratios consistently improved over the years, highlighting the company's efficient operations and strong financial management.