Paycom Soft (PAYC)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	472,399	389,578	255,962	185,936	226,087
Revenue	US$ in thousands	1,690,500	1,374,390	1,054,600	839,422	735,275
Pretax margin		27.94%	28.35%	24.27%	22.15%	30.75%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $472,399K ÷ $1,690,500K
= 27.94%

Paycom Software Inc's pretax margin has shown some fluctuations over the past five years. It was at 27.89% in 2023, slightly lower than the 28.33% recorded in 2022. In 2021, the pretax margin was 24.25%, indicating a slight decrease from the previous year. In 2020, the pretax margin was 22.10%, showing a comparatively lower profitability level. The highest pretax margin was observed in 2019 at 30.65%.

Overall, the trend in pretax margin for Paycom Software Inc has been somewhat inconsistent over the past five years. It is important for the company to closely monitor and manage its operating expenses and revenue generation to maintain or improve its pretax margin in the future.