Paycom Soft (PAYC)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 631,816 591,436 584,596 566,310 441,923 444,683 418,726 430,871 392,114 292,905 233,341 182,483 126,676 147,548 165,088 169,493 185,955 210,619 227,088 252,973
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
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
Return on total capital 40.09% 40.38% 40.98% 39.38% 33.91% 31.29% 29.77% 32.29% 33.16% 27.21% 23.47% 18.09% 14.17% 17.88% 20.84% 22.74% 28.36% 33.30% 38.76% 42.18%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $631,816K ÷ ($—K + $1,575,900K)
= 40.09%

Paycom Soft's return on total capital has shown a gradual decrease from March 31, 2020, at 42.18%, to December 31, 2021, at 14.17%. This downward trend suggests a diminishing efficiency in generating returns from its total capital over this period. However, starting from March 31, 2022, the return on total capital began to improve, increasing to 40.09% by December 31, 2024. This upward trajectory indicates a rebound in the company's ability to generate returns from its total capital, showcasing a positive trend in performance and potentially improved profitability.