Paycom Soft (PAYC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 4,197,540 | 3,902,510 | 3,215,140 | 2,607,910 | 2,486,920 |
| Operating ROA | 10.75% | 9.70% | 7.89% | 7.14% | 9.10% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $451,322K ÷ $4,197,540K
= 10.75%
The operating return on assets (ROA) for Paycom Software Inc has shown a positive trend over the past five years, indicating the company's ability to generate profits from its operational activities relative to its total assets.
From 2019 to 2020, there was a noticeable decrease in operating ROA from 9.10% to 7.14%, suggesting a temporary dip in the efficiency of utilizing assets to generate operating income.
However, the company rebounded in the following years, achieving operating ROA of 7.89% in 2021, 9.70% in 2022, and 10.75% in 2023. This upward trend indicates an improvement in operational efficiency and profitability over time.
Overall, the increasing trend in operating ROA reflects positively on Paycom Software Inc's ability to utilize its assets effectively to generate operating income, signaling financial health and improved operational performance.
Peer comparison
Dec 31, 2023