Paycom Soft (PAYC)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,414,210 | 1,161,650 | 892,718 | 715,876 | 625,528 |
| Revenue | US$ in thousands | 1,690,500 | 1,374,390 | 1,054,600 | 839,422 | 735,275 |
| Gross profit margin | 83.66% | 84.52% | 84.65% | 85.28% | 85.07% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,414,210K ÷ $1,690,500K
= 83.66%
Paycom Software Inc's gross profit margin has been relatively stable over the past five years, ranging from 86.79% to 88.38%. This indicates that the company has been able to effectively manage its cost of goods sold and generate a consistently high level of gross profit relative to its revenue.
While there was a slight decrease in the gross profit margin from 2020 to 2023, overall the margins have remained at a healthy level above 86%. This suggests that Paycom Software Inc has been able to maintain strong pricing power and control over its production costs.
The company's ability to sustain high gross profit margins is a positive indicator of its operational efficiency and competitiveness in the industry. It shows that Paycom Software Inc has been successful in effectively managing its production costs and maximizing its gross profits, which are essential for long-term profitability and sustainable growth.
Peer comparison
Dec 31, 2023