Paycom Soft (PAYC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 78.63% | 78.43% | 78.97% | 81.48% | 83.69% | 84.00% | 84.15% | 84.42% | 84.53% | 84.48% | 84.50% | 84.69% | 84.66% | 85.03% | 85.34% | 85.11% | 85.32% | 85.34% | 85.51% | 85.84% |
| Operating profit margin | 33.68% | 32.49% | 32.87% | 33.11% | 26.65% | 27.64% | 27.47% | 28.02% | 27.54% | 26.48% | 25.63% | 25.09% | 24.02% | 22.31% | 22.74% | 21.97% | 22.12% | 25.82% | 28.61% | 32.43% |
| Pretax margin | 34.46% | 33.41% | 33.92% | 34.26% | 27.89% | 29.11% | 28.75% | 29.03% | 28.33% | 26.80% | 25.90% | 25.36% | 24.25% | 22.45% | 22.89% | 22.13% | 22.10% | 25.86% | 28.61% | 32.34% |
| Net profit margin | 26.66% | 25.78% | 26.55% | 26.91% | 20.12% | 20.80% | 20.28% | 20.96% | 20.46% | 19.40% | 18.85% | 19.64% | 18.57% | 17.31% | 18.11% | 16.65% | 17.05% | 20.21% | 22.23% | 25.16% |
Paycom Soft's profitability ratios have shown fluctuating trends over the past few years.
1. Gross Profit Margin: The company's gross profit margin has been relatively stable, hovering around the mid to high 80% range for most periods. However, there has been a slight decline in recent quarters, with the margin dropping to around 83-84% by the end of 2024.
2. Operating Profit Margin: Paycom Soft's operating profit margin has shown more variability compared to the gross margin, starting around 30% and fluctuating between 20-30% throughout the years. Notably, the margin increased significantly in the first quarter of 2024 to over 30%.
3. Pretax Margin: The pretax margin, which indicates the company's profitability before taxes are deducted, has followed a similar trend to the operating margin, albeit with slightly higher percentages. The margin reached its peak in the fourth quarter of 2024 at around 34.5%.
4. Net Profit Margin: The net profit margin, representing the company's bottom line profitability, has also experienced fluctuations but generally remained above 15%. The margin increased notably in the first quarter of 2024, reaching close to 27%.
Overall, Paycom Soft has maintained healthy profitability levels, with some quarters showing significant improvements in margins. It will be important for the company to focus on managing costs and optimizing revenue streams to sustain or further enhance its profitability ratios in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 8.57% | 13.46% | 10.95% | 9.90% | 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% |
| Return on total capital | 40.09% | 40.38% | 40.98% | 39.38% | 33.91% | 31.29% | 29.77% | 32.29% | 33.16% | 27.21% | 23.47% | 18.09% | 14.17% | 17.88% | 20.84% | 22.74% | 28.36% | 33.30% | 38.76% | 42.18% |
| Return on equity (ROE) | 31.86% | 32.10% | 33.10% | 32.59% | 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% |
Paycom Soft's profitability ratios show a consistent trend of improvement over the observed periods.
1. Operating return on assets (Operating ROA) has fluctuated slightly, ranging from a low of 5.24% in March 2021 to a high of 16.97% in September 2024, with an average of around 9%. This ratio indicates that the company is generating profits efficiently from its assets.
2. Return on assets (ROA) has followed a similar pattern, with a low of 4.07% in September 2021 and a high of 13.46% in September 2024. This ratio measures the overall profitability of the company relative to its total assets.
3. Return on total capital has shown a steady increase over time, from 17.88% in September 2021 to 40.09% in December 2024. This indicates that the company is utilizing its total capital effectively to generate profits.
4. Return on equity (ROE) has also been on an upward trajectory, from 19.46% in March 2021 to 31.86% in December 2024. This ratio shows how well the company is generating returns on shareholder equity.
Overall, Paycom Soft's profitability ratios demonstrate an improving financial performance, indicating effective management of assets, capital, and equity to generate profits for the company and its shareholders.