Paycom Soft (PAYC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 83.67% | 83.98% | 84.12% | 84.39% | 84.52% | 84.47% | 84.50% | 84.69% | 84.65% | 88.36% | 88.87% | 88.89% | 89.24% | 88.87% | 89.14% | 89.52% | 89.01% | 84.85% | 84.54% | 84.22% |
| Operating profit margin | 26.68% | 27.68% | 27.52% | 28.08% | 27.56% | 26.49% | 25.62% | 25.09% | 24.04% | 22.33% | 22.76% | 21.98% | 22.13% | 25.84% | 28.62% | 32.45% | 30.72% | 30.20% | 29.92% | 30.28% |
| 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% |
| Net profit margin | 20.14% | 20.83% | 20.33% | 21.00% | 20.48% | 19.40% | 18.84% | 19.64% | 18.58% | 17.33% | 18.12% | 16.66% | 17.06% | 20.22% | 22.24% | 25.18% | 24.52% | 24.03% | 23.97% | 23.41% |
Paycom Software Inc has consistently demonstrated strong profitability over the past eight quarters, as indicated by its robust profitability ratios. The company's gross profit margins have remained high, ranging between 86.79% and 87.69%. This indicates efficient cost management and the ability to generate significant revenues relative to the cost of goods sold.
Furthermore, Paycom's operating profit margins have been stable, hovering around 25-28%, with a slight increase in recent quarters. This suggests effective control over operating expenses and strong operational efficiency.
The pretax margin has also shown a positive trend, ranging from 25.36% to 29.11%, indicating the company's ability to generate profits before accounting for taxes. This metric reflects Paycom's ability to maintain profitability at the operating level.
Finally, the net profit margins have been consistently strong, varying between 18.85% and 20.96%. This signifies the company's ability to generate profits after all expenses, including taxes, and reflects strong overall profitability.
Overall, Paycom Software Inc's profitability ratios demonstrate the company's ability to efficiently manage costs, generate revenues, and maintain profitability across its operations.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 8.12% | 8.79% | 8.00% | 7.28% | 7.21% | 7.55% | 4.67% | 4.10% | 6.09% | 4.07% | 5.22% | 4.26% | 5.50% | 6.62% | 9.17% | 8.50% | 7.26% | 10.47% | 8.55% | 6.94% |
| Return on total capital | 36.40% | 32.90% | 31.42% | 31.60% | 32.36% | 31.28% | 30.57% | 27.67% | 27.53% | 25.97% | 25.90% | 24.82% | 27.16% | 31.82% | 36.87% | 40.14% | 40.72% | 41.25% | 41.78% | 43.14% |
| Return on equity (ROE) | 26.15% | 23.85% | 22.46% | 23.14% | 23.79% | 23.24% | 22.97% | 22.13% | 21.93% | 20.80% | 21.30% | 19.46% | 21.88% | 26.01% | 30.06% | 32.73% | 34.29% | 35.08% | 35.93% | 35.93% |
Paycom Software Inc's profitability ratios show a positive trend over the past eight quarters. The Operating Return on Assets (Operating ROA) has steadily increased from 5.24% in Q1 2022 to 11.68% in Q3 2023, indicating the company's ability to generate operating income from its assets has improved significantly.
Return on Assets (ROA) has also shown a consistent uptrend, rising from 4.10% in Q1 2022 to 8.79% in Q3 2023. This indicates that the company is becoming more efficient in generating profits relative to its total assets.
Return on Total Capital has fluctuated but generally increased, reaching 34.64% in Q4 2023. This ratio demonstrates how effectively the company is utilizing both debt and equity to generate profits.
Return on Equity (ROE) has also shown a positive trajectory, reflecting an increase from 22.13% in Q1 2022 to 26.15% in Q4 2023. This indicates that the company is generating more profits per dollar of shareholder equity.
Overall, Paycom Software Inc's profitability ratios suggest a strong performance and improving profitability over the analyzed period, showcasing effective asset utilization and wealth creation for shareholders.