Paycom Soft (PAYC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 652,400 | 450,779 | 245,025 | 149,095 | 185,955 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,575,900 | 1,303,040 | 1,182,610 | 893,714 | 655,643 |
| Return on total capital | 41.40% | 34.59% | 20.72% | 16.68% | 28.36% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $652,400K ÷ ($—K + $1,575,900K)
= 41.40%
Paycom Soft's return on total capital has shown variability over the five-year period from December 31, 2020, to December 31, 2024. The return on total capital was 28.36% in 2020, which decreased to 16.68% in 2021. However, there was an improvement in 2022, with the return increasing to 20.72%. Subsequently, the return on total capital surged to 34.59% in 2023 and further improved to 41.40% in 2024.
The significant fluctuations in the return on total capital indicate that Paycom Soft has been effectively managing its capital investments and generating favorable returns for its investors. The increasing trend from 2021 to 2024 suggests enhanced efficiency in utilizing capital resources to generate profits. This improved performance reflects positively on the company's financial health and operational effectiveness, potentially attracting more investor interest and confidence in Paycom Soft's future prospects.
Peer comparison
Dec 31, 2024