Paycom Soft (PAYC)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	1,480,651	1,430,489	1,404,270	1,419,342	1,417,384	1,369,015	1,310,716	1,243,847	1,162,477	1,089,403	1,023,854	962,748	893,638	843,092	795,198	741,491	717,888	694,582	677,576	669,621
Revenue (ttm)	US$ in thousands	1,883,127	1,823,922	1,778,291	1,741,918	1,693,674	1,629,687	1,557,551	1,473,336	1,375,218	1,289,596	1,211,623	1,136,845	1,055,524	991,485	931,823	871,264	841,434	813,896	792,370	780,096
Gross profit margin		78.63%	78.43%	78.97%	81.48%	83.69%	84.00%	84.15%	84.42%	84.53%	84.48%	84.50%	84.69%	84.66%	85.03%	85.34%	85.11%	85.32%	85.34%	85.51%	85.84%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,480,651K ÷ $1,883,127K
= 78.63%

Paycom Soft's gross profit margin has exhibited a general downward trend over the reported periods from March 31, 2020 to December 31, 2024. Starting at a robust 85.84% in March 2020, the margin consistently declined, reaching 83.69% by December 31, 2023. Notably, there was a sharp decrease to 81.48% by March 31, 2024, followed by a further decline to 78.63% by December 31, 2024.

This declining trend in the gross profit margin indicates that the company is retaining a lower percentage of revenue after accounting for the cost of goods sold over time. A decreasing gross profit margin may signal challenges for the company in managing production costs or pricing strategies. It is important for Paycom Soft to closely monitor and address this trend to ensure the sustainability and profitability of its operations.