Paycom Soft (PAYC)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	502,000	340,788	281,389	195,960	143,453
Total assets	US$ in thousands	5,859,900	4,197,540	3,902,510	3,215,140	2,607,910
ROA		8.57%	8.12%	7.21%	6.09%	5.50%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $502,000K ÷ $5,859,900K
= 8.57%

The return on assets (ROA) for Paycom Soft has shown a consistent upward trend over the years, increasing from 5.50% as of December 31, 2020, to 8.57% as of December 31, 2024. This indicates that the company has been effectively utilizing its assets to generate profits. A rising ROA generally signifies improved efficiency in asset utilization and management, reflecting positively on the company's overall financial performance and profitability. Paycom Soft's increasing ROA suggests that it has been able to generate higher profits relative to its total assets, which is a key indicator of financial health and operational effectiveness.