Paycom Soft (PAYC)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.00	0.02	0.03	0.04	0.06

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,303,040K)
= 0.00

The debt-to-capital ratio of Paycom Software Inc has been declining over the past five years, indicating a decreasing reliance on debt to finance its operations and growth. In 2023, the company's debt-to-capital ratio is 0.00, suggesting that the company has no debt in its capital structure, which may indicate a strong financial position and lower financial risk. This is a positive sign for investors and creditors as it indicates that the company is effectively managing its debt obligations and maintaining a healthy balance between debt and equity financing. Overall, the trend of decreasing debt-to-capital ratio for Paycom Software Inc reflects a prudent financial strategy and a strong capital structure.