Paycom Soft (PAYC)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.72 | 2.38 | 3.02 | 3.29 | 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 |
Paycom Soft has consistently maintained a strong solvency position based on its solvency ratios. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00 throughout the analyzed period, indicating that the company has no significant debt obligations relative to its assets, capital, or equity.
The financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, has shown some fluctuations over the years but generally stayed within a reasonable range. The ratio peaked at 5.40 in March 2022, suggesting a temporary increase in leverage, but then decreased to 2.38 by September 2024, indicating a reduction in the company's reliance on debt financing.
Overall, Paycom Soft's solvency ratios suggest that the company has a strong financial position with minimal debt burden, which bodes well for its long-term financial stability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 185.83 | 225.83 | 284.89 | 302.52 | 229.33 | 170.38 | 122.94 | 136.44 | 154.62 | 184.57 | 410.09 | 848.76 | — | 3,882.84 | 4,344.42 | 4,133.98 | 3,262.37 | 1,276.48 | 534.32 | 372.02 |
Paycom Soft's interest coverage ratio has exhibited significant fluctuations over the years, indicating varying levels of the company's ability to meet its interest obligations. The interest coverage ratio measures how easily a company can pay its interest expenses with its operating income.
From March 31, 2020, to June 30, 2021, the interest coverage ratio showed a strong increasing trend, reaching a peak of over 4,000 by December 31, 2021. This suggests that the company had a substantial margin of safety in covering its interest expenses during this period.
However, starting from March 31, 2022, the interest coverage ratio began to decline, indicating a potential deterioration in the company's ability to cover its interest payments with operating income. By December 31, 2024, the ratio had reduced to a relatively low level.
The decreasing trend in the interest coverage ratio from 2022 to 2024 may raise concerns about the company's financial health and ability to service its debt. It is important for stakeholders to closely monitor this ratio in the future to assess the company's ability to manage its interest obligations effectively.