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.