Paycom Soft (PAYC)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	340,788	338,982	315,916	308,755	281,389	250,125	228,351	223,274	195,960	171,640	168,743	145,054	143,453	164,466	176,136	196,309	180,576	166,610	156,227	143,187
Total assets	US$ in thousands	4,197,540	3,856,100	3,951,340	4,241,620	3,902,510	3,314,570	4,891,700	5,444,570	3,215,140	4,218,040	3,233,090	3,406,770	2,607,910	2,485,200	1,921,500	2,309,720	2,486,920	1,592,030	1,826,190	2,062,830
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%

December 31, 2023 calculation

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

To analyze Paycom Software Inc's return on assets (ROA) based on the provided data, we observe a fluctuating trend over the quarters. ROA measures a company's ability to generate profits from its assets, reflecting its efficiency in asset utilization.

The ROA for Q4 2023 stands at 8.12%, showing a slight decrease from the previous quarter at 8.79% in Q3 2023. Despite this decline, Paycom Software Inc maintains a relatively strong ROA compared to earlier periods. When compared to the same quarter in the previous year, Q4 2022, where ROA was 7.21%, there has been an observable improvement in the company’s asset efficiency.

Notably, the ROA reached its peak in Q3 2023 at 8.79%, indicating enhanced profitability relative to the other quarters. This contrasts with the lower ROA figures recorded in Q2 2022 and Q1 2022, suggesting a positive trend in asset efficiency over time.

Overall, Paycom Software Inc's ROA demonstrates fluctuation but generally shows a positive trajectory in effectively utilizing its assets to generate profit. This trend signals the company's ability to manage its resources efficiently and generate returns for its stakeholders.