Paycom Soft (PAYC)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,303,040	1,182,610	893,714	655,643	526,628
ROE		26.15%	23.79%	21.93%	21.88%	34.29%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $340,788K ÷ $1,303,040K
= 26.15%

Paycom Software Inc's return on equity (ROE) has shown a consistent trend over the past five years. The company's ROE has ranged from 21.88% to 34.27% during this period, with a slight dip in 2021 followed by an increase in 2023.

The ROE of 26.15% in 2023 indicates that for every dollar of shareholders' equity, the company generated a return of 26.15 cents. This represents a strong performance in utilizing shareholders' equity to generate profits.

The increasing trend in ROE from 2021 to 2023 suggests that the company has been effectively managing its equity capital to drive profitability. However, it is important to note that the ROE of 26.15% in 2023 is slightly lower than the peak ROE of 34.27% in 2019, indicating a potential decrease in profitability efficiency compared to previous years.

Overall, Paycom Software Inc's ROE performance indicates a solid ability to generate profits relative to shareholders' equity, with room for potential improvement to reach previous peak levels.