Paycom Soft (PAYC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 474,326 | 392,114 | 253,567 | 185,955 | 227,027 |
| Interest expense | US$ in thousands | 1,927 | 2,536 | 1,436 | 19 | 940 |
| Interest coverage | 246.15 | 154.62 | 176.58 | 9,787.11 | 241.52 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $474,326K ÷ $1,927K
= 246.15
Paycom Software Inc's interest coverage ratio has shown significant fluctuations over the past five years. In particular, the interest coverage ratio was not calculable for the year ended December 31, 2021.
The interest coverage ratio for the years ended December 31, 2023, and December 31, 2022, were 234.21 and 149.32, respectively, indicating that the company's ability to cover its interest expenses with its operating income has improved over this period.
However, the interest coverage ratio for the year ended December 31, 2020, was extremely high at 9,795.95, which may suggest some abnormality or one-time event affecting the denominator in the calculation.
In comparison, the interest coverage ratio for the year ended December 31, 2019, was 240.66, displaying a more typical level of coverage. Overall, while the interest coverage ratio for Paycom Software Inc has shown volatility, its recent values indicate a solid ability to meet its interest obligations with operating income.
Peer comparison
Dec 31, 2023