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Paycom Software Inc. (NYSE:PAYC)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Common-Size Balance Sheet: Assets

Paycom Software Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Cash and cash equivalents 10.27 8.65 5.82 5.37 3.00
Accounts receivable 0.59 0.30 0.35 0.37 0.22
Prepaid expenses 0.87 0.74 0.68 0.55 0.50
Inventory 0.04 0.04 0.04 0.05 0.05
Income tax receivable 0.14 0.51 0.40 0.16 0.26
Deferred contract costs 2.47 2.39 2.33 1.87 2.32
Current assets before funds held for clients 14.38% 12.61% 9.63% 8.38% 6.36%
Funds held for clients 56.45 57.43 61.87 66.86 63.59
Current assets 70.83% 70.04% 71.50% 75.24% 69.95%
Property and equipment, net 10.31 10.85 10.94 9.59 11.63
Intangible assets, net 1.38 1.80 0.01 0.02 0.05
Goodwill 1.33 1.61 1.99 2.09 3.41
Long-term deferred contract costs 14.55 14.36 14.24 11.75 14.81
Other assets 1.59 1.32 1.32 1.32 0.15
Noncurrent assets 29.17% 29.96% 28.50% 24.76% 30.05%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The asset structure of the organization exhibits a high concentration of current assets, which consistently represent approximately 70% of total assets over the five-year period. A significant shift in the composition of these current assets is evident, characterized by a steady increase in corporate liquidity and a corresponding decrease in the relative weight of funds held for clients.

Liquidity and Working Capital Trends
Cash and cash equivalents have demonstrated consistent growth, increasing from 3.00% of total assets in 2018 to 10.27% by 2022. This expansion is mirrored in the "Current assets before funds held for clients" category, which rose from 6.36% to 14.38% during the same period. Conversely, accounts receivable and prepaid expenses remain minimal, indicating an efficient collection cycle and low reliance on prepaid outflows relative to the total asset base.
Client-Held Fund Dynamics
Funds held for clients constitute the largest single component of the balance sheet. However, a downward trend is observed after a peak of 66.86% in 2019, falling to 56.45% by 2022. This suggests a structural change in the proportion of third-party funds managed relative to the company's own asset growth.
Noncurrent Asset Composition
Noncurrent assets have remained relatively stable, fluctuating between 24.76% and 30.05% of total assets. Property and equipment, net, have maintained a consistent presence around 10% to 11%. Long-term deferred contract costs represent a significant portion of the noncurrent asset base, ending at 14.55% in 2022. Meanwhile, goodwill has seen a steady decline from 3.41% in 2018 to 1.33% in 2022, indicating that acquired intangible premiums are becoming a smaller fraction of the overall asset mix.

Overall, the balance sheet indicates a transition toward higher internal liquidity and a reduced relative dependency on client-held funds, while maintaining a lean fixed-asset profile characteristic of a scalable software service model.

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