Paycom Soft (PAYC)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 634,328 | 592,551 | 584,578 | 576,704 | 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 |
| Total assets | US$ in thousands | 5,859,900 | 3,492,530 | 4,312,740 | 4,733,260 | 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 |
| Operating ROA | 10.82% | 16.97% | 13.55% | 12.18% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $634,328K ÷ $5,859,900K
= 10.82%
Operating return on assets (Operating ROA) is a key financial ratio that indicates how efficiently a company generates operating profit from its assets. Looking at the data provided for Paycom Soft, we observe fluctuations in the Operating ROA over the period from March 31, 2020, to December 31, 2024.
Initially, in March 2020, the Operating ROA stood at 10.95%, showing a relatively healthy profitability level. Subsequently, there was an increase to 11.80% in June 2020, indicating improved efficiency in generating operating income relative to its assets.
However, there was a noticeable decline in Operating ROA in the following quarters, with figures dropping to 5.62% in March 2021 and 5.24% in both September 2021 and March 2022. This downward trend suggests a decrease in operating profitability concerning the assets employed by the company during this period.
The company's performance started to improve afterward, with the Operating ROA rising to 13.55% in June 2024, indicating a significant increase in profitability relative to its asset base. The ratio peaked at 16.97% in September 2024, showcasing a remarkable efficiency in generating operating income from its assets.
However, in the last quarter of 2024, the Operating ROA decreased to 10.82%, possibly due to various factors affecting the company's operations or asset utilization efficiency.
In conclusion, the analysis of Paycom Soft's Operating ROA reveals fluctuations in profitability over the analyzed period. The company displayed varying levels of efficiency in generating operating income from its assets, with periods of both increase and decrease in performance.
Peer comparison
Dec 31, 2024