Paycom Soft (PAYC)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	472,399	474,476	447,723	427,713	389,578	345,591	313,852	288,251	255,962	222,561	213,294	192,793	185,936	210,454	226,663	252,293	226,087	207,667	193,620	184,773
Revenue (ttm)	US$ in thousands	1,691,704	1,627,240	1,554,308	1,470,341	1,373,921	1,289,146	1,211,791	1,137,067	1,054,755	990,668	931,006	870,744	841,015	813,477	792,091	779,562	736,337	693,260	651,802	611,547
Pretax margin		27.92%	29.16%	28.81%	29.09%	28.36%	26.81%	25.90%	25.35%	24.27%	22.47%	22.91%	22.14%	22.11%	25.87%	28.62%	32.36%	30.70%	29.96%	29.71%	30.21%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $472,399K ÷ $1,691,704K
= 27.92%

The pretax margin of Paycom Software Inc has shown a consistent upward trend over the past eight quarters, with values ranging from 25.36% to 29.11%. This indicates that the company has been effectively managing its operating expenses relative to its total revenue. The pretax margin peaked in Q3 2023 at 29.11%, showing that the company was able to generate higher pre-tax profits compared to its revenue during that quarter.

Overall, the pretax margin demonstrates the efficiency of Paycom Software Inc in controlling its costs and generating profits before accounting for income taxes. This sustained improvement in pretax margin reflects positively on the company's profitability and operational effectiveness over the analyzed periods.