Paycom Soft (PAYC)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	340,788	281,389	195,960	143,453	180,576
Total assets	US$ in thousands	4,197,540	3,902,510	3,215,140	2,607,910	2,486,920
ROA		8.12%	7.21%	6.09%	5.50%	7.26%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $340,788K ÷ $4,197,540K
= 8.12%

The return on assets (ROA) for Paycom Software Inc has exhibited a generally positive trend over the past five years, increasing from 7.26% in 2019 to 8.12% in 2023. This indicates that the company has been more effective in generating profit relative to its total assets during this period.

The gradual improvement in ROA suggests that Paycom Software Inc has been successful in utilizing its assets efficiently to generate earnings. This could be attributed to effective management of resources, operational efficiencies, or strategic investments that have contributed to the company's profitability.

The consistent growth in ROA reflects positively on Paycom Software Inc's financial performance and indicates that the company has been able to generate higher returns from its asset base, which is favorable for shareholders and investors. It also suggests that the company has been able to maintain or increase its profitability despite potentially expanding its asset base over the years.

Overall, the increasing trend in ROA for Paycom Software Inc demonstrates the company's ability to leverage its assets effectively to drive profitability and create value for stakeholders.