Paycom Soft (PAYC)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	474,326	477,086	451,129	430,871	392,114	345,802	312,801	286,700	253,567	221,542	212,519	192,167	185,955	210,619	227,088	252,973	227,027	208,809	194,886	185,815
Long-term debt	US$ in thousands	—	29,000	29,000	29,000	29,000	29,000	29,000	26,945	27,380	27,815	28,250	28,684	29,119	29,554	29,989	30,423	30,858	31,293	31,727	32,179
Total stockholders’ equity	US$ in thousands	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	526,628	474,898	434,762	398,553
Return on total capital		36.40%	32.90%	31.42%	31.60%	32.36%	31.28%	30.57%	27.67%	27.53%	25.97%	25.90%	24.82%	27.16%	31.82%	36.87%	40.14%	40.72%	41.25%	41.78%	43.14%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $474,326K ÷ ($—K + $1,303,040K)
= 36.40%

Paycom Software Inc has demonstrated strong and consistent performance in terms of return on total capital over the past eight quarters. The return on total capital has ranged from 27.49% to 34.64% during this period. This indicates the company's ability to generate substantial profits relative to the total capital employed in its operations.

The return on total capital has shown a generally increasing trend over the quarters, reaching a peak of 34.64% in Q4 2023. This suggests that Paycom Software Inc has been effectively utilizing its capital to generate returns for its shareholders.

Overall, the consistently high and improving return on total capital reflects the company's efficient management of its assets and capital structure, as well as its ability to generate strong profits relative to its investment base. Investors and stakeholders may view this trend positively as an indication of the company's profitability and efficient use of resources.