Paycom Soft (PAYC)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.00	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.03	0.03	0.04	0.04	0.04	0.05	0.05	0.06	0.06	0.07	0.07

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 consistently low and stable over the past eight quarters, ranging from 0.00 to 0.03. This indicates that the company has a very conservative approach to debt financing, as it maintains a low level of debt relative to its total capital structure. A low debt-to-capital ratio suggests that the company relies more on equity financing rather than debt to fund its operations and investments. This can be viewed positively by investors and creditors as it signifies lower financial risk and greater financial stability for the company. Paycom Software Inc's consistent low debt-to-capital ratio reflects a prudent financial management strategy, which may contribute to its overall financial health and long-term sustainability.