Current Ratio
since 2014
Calculation
Paycom Software Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.16 | = | 2,764,172) | ÷ | 2,377,037) |
| Dec 31, 2021 | 1.13 | = | 2,252,038) | ÷ | 1,990,410) |
| Dec 31, 2020 | 1.09 | = | 1,864,605) | ÷ | 1,718,030) |
| Dec 31, 2019 | 1.07 | = | 1,871,100) | ÷ | 1,753,522) |
| Dec 31, 2018 | 1.03 | = | 1,064,622) | ÷ | 1,028,682) |
| Dec 31, 2017 | 1.01 | = | 1,149,862) | ÷ | 1,140,152) |
| Dec 31, 2016 | 1.03 | = | 925,583) | ÷ | 898,894) |
| Dec 31, 2015 | 1.05 | = | 761,138) | ÷ | 727,534) |
| Dec 31, 2014 | 1.02 | = | 693,393) | ÷ | 678,772) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 US$ in thousands
An analysis of the financial position from 2014 to 2022 reveals a consistent expansion in both current assets and current liabilities, indicating significant operational scaling. Current assets grew from approximately $693 million in 2014 to $2.76 billion by 2022, while current liabilities followed a similar trajectory, increasing from $679 million to $2.38 billion over the same period.
- Short-Term Liquidity Trends
- From 2014 through 2018, the current ratio remained highly stable, fluctuating within a narrow band between 1.01 and 1.05. This suggests a lean working capital management strategy where current assets were maintained at a level just sufficient to cover immediate obligations.
- Liquidity Strengthening
- A progressive upward trend in the current ratio is observed beginning in 2019. The ratio rose steadily from 1.07 in 2019 to 1.16 by the end of 2022. This gradual increase indicates an improvement in the short-term solvency margin, providing a larger cushion of liquid assets relative to current liabilities.
- Asset and Liability Correlation
- The near-parallel growth of assets and liabilities suggests that the increase in short-term obligations is closely tied to the growth of the asset base. The transition from a ratio near 1.00 to 1.16 reflects a shift toward a more conservative liquidity posture in the latter half of the analyzed period.
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Comparison to Industry (Industrials)
Paycom Software Inc., current ratio, long-term trends, comparison to industry (industrials)
| Paycom Software Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 1.16 | 1.20 |
| Dec 31, 2021 | 1.13 | 1.29 |
| Dec 31, 2020 | 1.09 | 1.41 |
| Dec 31, 2019 | 1.07 | 1.16 |
| Dec 31, 2018 | 1.03 | 1.13 |
| Dec 31, 2017 | 1.01 | 1.24 |
| Dec 31, 2016 | 1.03 | 1.22 |
| Dec 31, 2015 | 1.05 | 1.24 |
| Dec 31, 2014 | 1.02 | 1.26 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).