Paycom Soft (PAYC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 |
| 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 |
| Debt-to-equity ratio | 0.00 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.06 | 0.07 | 0.07 | 0.08 |
| Financial leverage ratio | 3.22 | 2.71 | 2.81 | 3.18 | 3.30 | 3.08 | 4.92 | 5.40 | 3.60 | 5.11 | 4.08 | 4.57 | 3.98 | 3.93 | 3.28 | 3.85 | 4.72 | 3.35 | 4.20 | 5.18 |
Paycom Software Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets and capital. The debt-to-assets ratio has remained stable at 0.01 across all quarters, indicating that the company has almost no debt in relation to its total assets. Similarly, the debt-to-capital and debt-to-equity ratios also show minimal debt levels, gradually increasing from 0.02 in Q1 2022 to 0.03 in Q4 2022 and staying at that level in subsequent quarters.
However, the financial leverage ratio has varied more significantly, ranging from 2.71 to 5.40 over the past eight quarters. While it peaked in Q1 2022 and Q2 2022, it has since decreased, suggesting a reduction in the company's reliance on debt to finance its operations. Overall, these solvency ratios demonstrate Paycom Software Inc's ability to meet its financial obligations and maintain a healthy balance sheet structure with limited debt exposure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 246.15 | 182.79 | 132.45 | 136.44 | 154.62 | 182.39 | 244.76 | 234.23 | 178.82 | 199.77 | 299.74 | 466.42 | 9,787.11 | 1,276.48 | 534.32 | 372.02 | 241.52 | 182.85 | 153.94 | 178.33 |
Paycom Software Inc's interest coverage has displayed fluctuating trends over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt, with higher ratios indicating better financial health.
In Q1 2022, the interest coverage ratio was unusually high at 1,326.92, suggesting the company had significant earnings to cover its interest expenses. This exceptionally high ratio may have been influenced by specific one-time events or accounting anomalies.
Subsequently, the ratio experienced a sharp decline to 545.71 in Q2 2022, indicating a decrease in the company's earnings relative to its interest obligations. However, the ratio rebounded to 215.17 in Q3 2022, reflecting an improvement in the company's ability to cover interest payments.
During Q4 2022, the interest coverage ratio decreased further to 149.32, signaling potential challenges in meeting interest obligations. However, there was a significant improvement in Q1 2023, with the ratio increasing to 130.73, suggesting a partial recovery in earnings relative to interest expenses.
The interest coverage ratio continued to rise in Q2 2023 to 125.60, indicating ongoing progress in the company's financial performance. This positive trend was further reinforced in Q3 2023, as the ratio increased to 172.58, reflecting improved earnings relative to interest payments.
The most recent data point in Q4 2023 showed a substantial improvement in the interest coverage ratio to 234.21, indicating a strengthening ability of Paycom Software Inc to cover its interest expenses. Overall, while the company experienced fluctuations in its interest coverage ratio over the past eight quarters, the recent upward trend suggests an enhanced financial position in meeting its interest obligations.