Paycom Soft (PAYC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.72 | 3.22 | 3.30 | 3.60 | 3.98 |
Paycom Soft's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been reported as 0.00 across the years 2020 to 2024, suggesting that the company has no debt obligations in relation to its total assets, capital, or equity.
Furthermore, the financial leverage ratio, which measures the extent to which a company utilizes debt in its capital structure, shows a decreasing trend from 3.98 in 2020 to 3.22 in 2023, before increasing slightly to 3.72 in 2024. Despite this slight increase in 2024, the financial leverage ratio remains at reasonable levels, indicating that the company is not overly reliant on debt financing to support its operations.
Overall, Paycom Soft's solvency ratios demonstrate a strong capacity to meet its financial obligations and suggest a conservative approach to managing its debt levels, reflecting positively on the company's financial stability and risk management practices.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 191.88 | 233.93 | 96.62 | 62.25 | 9,787.11 |
Paycom Soft's interest coverage ratio has shown a fluctuating trend over the past five years. In December 31, 2020, the interest coverage ratio was extremely high at 9,787.11, indicating a strong ability to cover its interest expenses with its earnings. However, there was a significant decline in the interest coverage ratio in December 31, 2021, dropping to 62.25. This sharp decrease may raise concerns about the company's ability to meet its interest obligations from its operating income.
Subsequently, Paycom Soft's interest coverage ratio improved in the following years, reaching 96.62 in December 31, 2022, and 233.93 in December 31, 2023, indicating a better ability to handle interest expenses with its earnings. In December 31, 2024, the interest coverage ratio declined slightly to 191.88, still reflecting a strong position to cover interest payments.
Overall, Paycom Soft's interest coverage ratio has experienced fluctuations, with a notable drop in 2021 but recovering in the subsequent years. It will be important for stakeholders to monitor this ratio closely to ensure the company can continue meeting its interest obligations effectively.