Paycom Soft (PAYC)

Debt-to-equity 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-equity ratio		0.00	0.02	0.03	0.04	0.06

December 31, 2023 calculation

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

The debt-to-equity ratio of Paycom Software Inc has shown a decreasing trend over the past five years, indicating a strengthening financial position in terms of leverage. The ratio declined from 0.06 in 2019 to 0.00 in 2023, reflecting a significant reduction in the company's reliance on debt to fund its operations and growth.

A debt-to-equity ratio of 0.00 in 2023 suggests that the company has no outstanding debt relative to its equity, which could signify a conservative financial strategy or strong cash reserves. This indicates that the company's shareholders' equity exceeds its debt obligations, portraying a low risk of financial distress due to debt repayment issues.

The decreasing trend from 2020 to 2023 implies that Paycom Software Inc has been steadily reducing its debt levels or increasing its equity position over time. This trend may be viewed positively by investors and creditors as it may enhance the company's financial stability and creditworthiness.

Overall, the trend of decreasing debt-to-equity ratio for Paycom Software Inc reflects a prudent approach to managing its capital structure and suggests a lower financial risk profile compared to previous years.