Name: Paycom Software Inc. (NYSE:PAYC) | Balance Sheet: Assets
Creator: Stock Analysis on Net

Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Assets: Selected Items

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Current Assets: Selected Items

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Paycom Software Inc., consolidated balance sheet: assets

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Cash and cash equivalents	400,730)	277,978)	151,710)	133,667)	45,718)
Accounts receivable	22,843)	9,490)	9,130)	9,298)	3,414)
Prepaid expenses	34,056)	23,729)	17,854)	13,561)	7,658)
Inventory	1,607)	1,131)	1,151)	1,158)	797)
Income tax receivable	5,583)	16,413)	10,447)	4,020)	3,962)
Deferred contract costs	96,378)	76,724)	60,819)	46,618)	35,286)
Current assets before funds held for clients	561,197)	405,465)	251,111)	208,322)	96,835)
Funds held for clients	2,202,975)	1,846,573)	1,613,494)	1,662,778)	967,787)
Current assets	2,764,172)	2,252,038)	1,864,605)	1,871,100)	1,064,622)
Property and equipment, net	402,448)	348,953)	285,218)	238,458)	176,962)
Intangible assets, net	54,017)	58,028)	319)	532)	745)
Goodwill	51,889)	51,889)	51,889)	51,889)	51,889)
Long-term deferred contract costs	567,974)	461,852)	371,357)	292,134)	225,459)
Other assets	62,013)	42,385)	34,524)	32,804)	2,249)
Noncurrent assets	1,138,341)	963,107)	743,307)	615,817)	457,304)
Total assets	3,902,513)	3,215,145)	2,607,912)	2,486,917)	1,521,926)

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).

Total assets exhibited a consistent upward trajectory over the five-year period, increasing from 1.52 billion US dollars in 2018 to 3.90 billion US dollars by the end of 2022. This growth was driven primarily by a substantial increase in current assets and a steady expansion of noncurrent assets, reflecting a significant scaling of the balance sheet.

Liquidity and Cash Position: Cash and cash equivalents demonstrated aggressive growth, rising from 45.7 million US dollars in 2018 to 400.7 million US dollars in 2022. This represents an increase of approximately 776%, indicating a substantial strengthening of the company's immediate liquidity position.
Fiduciary Asset Management: Funds held for clients constitute the largest single component of the asset base. These funds grew from 967.8 million US dollars in 2018 to 2.20 billion US dollars in 2022. The scale of these assets suggests a business model heavily reliant on the processing and holding of client funds, which accounts for more than half of the total assets as of 2022.
Capitalized Contract Costs: A notable pattern is observed in deferred contract costs, both current and long-term. Current deferred contract costs grew from 35.3 million US dollars in 2018 to 96.4 million US dollars in 2022, while long-term deferred contract costs rose from 225.5 million US dollars to 568.0 million US dollars. The steady accumulation of these costs suggests ongoing investment in client acquisition and contract fulfillment that is being amortized over longer periods.
Fixed and Intangible Assets: Property and equipment, net, increased steadily from 177.0 million US dollars in 2018 to 402.4 million US dollars in 2022, indicating continued investment in physical infrastructure. Goodwill remained stagnant at 51.9 million US dollars throughout the period, while intangible assets showed a significant spike in 2021, rising from 319 thousand US dollars in 2020 to 58.0 million US dollars.
Working Capital Trends: Accounts receivable remained relatively low compared to total assets but experienced a sharp increase in the final year, rising from 9.5 million US dollars in 2021 to 22.8 million US dollars in 2022. Prepaid expenses also followed a consistent growth path, increasing from 7.7 million US dollars to 34.1 million US dollars over the analyzed timeframe.

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