Paycom Soft (PAYC)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	451,322	450,433	427,797	412,844	378,679	341,471	310,511	285,288	253,567	221,188	211,919	191,405	186,123	210,170	226,690	253,000	226,224	209,343	195,032	185,183
Total assets	US$ in thousands	4,197,540	3,856,100	3,951,340	4,241,620	3,902,510	3,314,570	4,891,700	5,444,570	3,215,140	4,218,040	3,233,090	3,406,770	2,607,910	2,485,200	1,921,500	2,309,720	2,486,920	1,592,030	1,826,190	2,062,830
Operating ROA		10.75%	11.68%	10.83%	9.73%	9.70%	10.30%	6.35%	5.24%	7.89%	5.24%	6.55%	5.62%	7.14%	8.46%	11.80%	10.95%	9.10%	13.15%	10.68%	8.98%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $451,322K ÷ $4,197,540K
= 10.75%

To analyze the operating return on assets (operating ROA) of Paycom Software Inc, we can observe a consistent improvement in the metric over the recent quarters. The operating ROA increased from 9.70% in Q4 2022 to 10.75% in Q4 2023, indicating a positive trend in the company's operational efficiency in generating profits from its assets.

The operating ROA reached its peak in Q3 2023 at 11.68%, showcasing a significant performance improvement. Although there was a slight dip to 10.83% in Q2 2023, the metric remained relatively stable at above 10% in the following quarters, demonstrating the company's ability to efficiently utilize its assets to generate operating income.

Comparing the operating ROA of Q4 2023 to Q1 2022, there is a notable increase from 5.24% to 10.75%, signifying substantial growth in operational performance and asset utilization over the period.

Overall, the consistently improving trend in operating ROA reflects positively on Paycom Software Inc's operational efficiency and effectiveness in generating profits relative to its assets, indicating a healthy financial position and management of resources.