Paycom Soft (PAYC)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,575,900	1,303,040	1,182,610	893,714	655,643
ROE		31.85%	26.15%	23.79%	21.93%	21.88%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $502,000K ÷ $1,575,900K
= 31.85%

Paycom Soft's Return on Equity (ROE) has shown a positive trend over the years, indicating efficient utilization of shareholder equity to generate profits. The ROE increased from 21.88% in December 31, 2020, to 31.85% by December 31, 2024, reflecting a steady improvement in the company's profitability and wealth creation for shareholders. This upward trajectory suggests that Paycom Soft has been successful in generating higher returns on the equity invested in the business, which is a positive indicator of the company's financial health and operational efficiency. Overall, the increasing trend in ROE demonstrates that Paycom Soft is effectively leveraging shareholder funds to generate greater profits and create value for its investors.