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.
Peer comparison
Dec 31, 2023