Paycom Soft (PAYC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 451,322 | 378,679 | 253,567 | 186,123 | 226,224 |
| Revenue | US$ in thousands | 1,690,500 | 1,374,390 | 1,054,600 | 839,422 | 735,275 |
| Operating profit margin | 26.70% | 27.55% | 24.04% | 22.17% | 30.77% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $451,322K ÷ $1,690,500K
= 26.70%
The operating profit margin of Paycom Software Inc has displayed fluctuations over the past five years. In 2023, the operating profit margin was 26.65%, slightly lower than the previous year's margin of 27.54%. Despite this slight decrease, the company has maintained a relatively strong profitability metric compared to 2021 and 2020 when the operating profit margins were 24.02% and 22.12%, respectively.
It is noteworthy that in 2019, Paycom Software Inc reported a high operating profit margin of 30.67%, which was the highest among the five years analyzed. The variability in operating profit margins over the years may indicate changes in the company's cost structure, revenue generation, or operational efficiency. Overall, the consistent profitability demonstrated by the company suggests effective cost management and revenue generation strategies despite some fluctuations in the operating profit margin.
Peer comparison
Dec 31, 2023