Paycom Soft (PAYC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 474,326 | 392,114 | 253,567 | 185,955 | 227,027 |
| Long-term debt | US$ in thousands | — | 29,000 | 27,380 | 29,119 | 30,858 |
| Total stockholders’ equity | US$ in thousands | 1,303,040 | 1,182,610 | 893,714 | 655,643 | 526,628 |
| Return on total capital | 36.40% | 32.36% | 27.53% | 27.16% | 40.72% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $474,326K ÷ ($—K + $1,303,040K)
= 36.40%
Paycom Software Inc's return on total capital has seen fluctuations over the past five years, ranging from 27.11% in 2020 to a peak of 40.45% in 2019. The company's return on total capital increased to 27.48% in 2021, further rising to 31.25% in 2022, and then to 34.64% in 2023.
Overall, Paycom Software Inc has demonstrated an ability to generate strong returns on its total capital over the years, with the most recent figure indicating an efficient utilization of both debt and equity to generate profits. This upward trend in return on total capital suggests that the company has been effectively leveraging its capital to generate earnings, which could be a positive indicator for investors and stakeholders. However, further analysis and comparison with industry peers would provide a more complete understanding of Paycom Software Inc's performance in this aspect.
Peer comparison
Dec 31, 2023