Paycom Soft (PAYC)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	502,035	470,192	472,133	468,679	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
Total assets	US$ in thousands	5,859,900	3,492,530	4,312,740	4,733,260	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
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $502,035K ÷ $5,859,900K
= 8.57%

The Return on Assets (ROA) for Paycom Soft has shown fluctuations over the specified period. The ROA started at a relatively high 8.50% in March 2020 and experienced some variability before dropping to 4.10% in March 2022. Subsequently, the ROA showed an upward trend, reaching 13.46% in September 2024, indicating a significant improvement in the company's ability to generate profit from its assets. However, by the end of December 2024, the ROA decreased to 8.57%.

Overall, the company's ROA performance reflects a mix of highs and lows, suggesting varying levels of efficiency in utilizing its assets to generate earnings. This calls for a closer examination of the company's asset management strategies to sustain improved profitability levels over the long term.