Paycom Soft (PAYC)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,575,900	1,464,650	1,426,530	1,438,060	1,303,040	1,421,310	1,406,680	1,334,470	1,182,610	1,076,380	994,139	1,009,020	893,714	825,341	792,256	745,476	655,643	632,399	585,853	599,788
ROE		31.86%	32.10%	33.10%	32.59%	26.15%	23.85%	22.46%	23.14%	23.79%	23.24%	22.97%	22.13%	21.93%	20.80%	21.30%	19.46%	21.88%	26.01%	30.06%	32.73%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $502,035K ÷ $1,575,900K
= 31.86%

Paycom Soft's Return on Equity (ROE) has shown fluctuations over the analyzed period. The ROE was 32.73% as of March 31, 2020, indicating that for every dollar of shareholders' equity invested, the company generated a return of 32.73%. Subsequently, the ROE decreased to 21.88% by December 31, 2020, before trending upwards to 23.85% by September 30, 2023.

Notably, there was a significant increase in ROE to 33.10% as of June 30, 2024, demonstrating improved profitability and efficiency in utilizing equity. However, the ROE slightly declined to 31.86% by December 31, 2024.

Overall, Paycom Soft's ROE performance indicates the company's ability to generate profits from its shareholders' equity, with fluctuations reflecting changes in profitability and efficiency over the period. Further analysis would be necessary to understand the factors driving these fluctuations and to assess the sustainability of the ROE trend.