Paycom Soft (PAYC)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	502,000	340,788	281,389	195,960	143,453
Revenue	US$ in thousands	1,883,200	1,693,670	1,375,220	1,055,520	841,434
Net profit margin		26.66%	20.12%	20.46%	18.57%	17.05%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $502,000K ÷ $1,883,200K
= 26.66%

Based on the data provided, Paycom Soft's net profit margin has shown a positive trend over the years, reflecting the company's ability to efficiently convert revenue into profits. The net profit margin increased from 17.05% as of December 31, 2020, to 26.66% as of December 31, 2024.

This upward trajectory indicates that Paycom Soft has been effectively managing its costs and expenses relative to its revenue generation. The company has been able to improve its profitability over time, which is a positive sign for investors and stakeholders.

The consistent growth in net profit margin demonstrates the company's operational efficiency and financial health. It suggests that Paycom Soft has been successful in maintaining a healthy balance between revenue growth and cost management, ultimately leading to a stronger bottom line performance.

Overall, the increasing trend in Paycom Soft's net profit margin signifies the company's improved profitability and sustainable business operations over the years.