Debt to Equity
since 2014
Calculation
Paycom Software Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current portion1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.02 | = | 29,000) | ÷ | 1,182,607) |
| Dec 31, 2021 | 0.03 | = | 29,155) | ÷ | 893,714) |
| Dec 31, 2020 | 0.05 | = | 30,894) | ÷ | 655,643) |
| Dec 31, 2019 | 0.06 | = | 32,633) | ÷ | 526,628) |
| Dec 31, 2018 | 0.10 | = | 34,389) | ÷ | 334,753) |
| Dec 31, 2017 | 0.26 | = | 35,302) | ÷ | 135,402) |
| Dec 31, 2016 | 0.26 | = | 29,824) | ÷ | 116,527) |
| Dec 31, 2015 | 0.26 | = | 25,860) | ÷ | 98,314) |
| Dec 31, 2014 | 0.36 | = | 26,978) | ÷ | 74,138) |
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
A consistent and significant reduction in financial leverage is evident between 2014 and 2022. The organization has transitioned from a modest debt-reliant capital structure to a position of extreme equity strength, effectively minimizing its reliance on borrowed funds.
- Debt to Equity Ratio Trend
- The debt to equity ratio experienced a sustained decline from 0.36 in 2014 to 0.02 by the end of 2022. While the ratio remained stable at 0.26 between 2015 and 2017, a sharp contraction began in 2018, falling to 0.10 and continuing a downward trajectory to near-zero levels by 2022.
- Stockholders' Equity Expansion
- The primary driver of the declining leverage ratio is the exponential growth in stockholders' equity, which rose from 74,138 thousand US dollars in 2014 to 1,182,607 thousand US dollars in 2022. The most aggressive growth occurred between 2017 and 2019, during which equity increased from 135,402 thousand US dollars to 526,628 thousand US dollars.
- Long-term Debt Stability
- Long-term debt remained relatively stagnant throughout the analyzed period. After peaking at 35,302 thousand US dollars in 2017, the debt load gradually decreased to 29,000 thousand US dollars by 2022. The combination of stagnant debt levels and surging equity suggests a strategic shift toward self-funding and a reduction in financial risk.
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Comparison to Industry (Industrials)
Paycom Software Inc., debt to equity, long-term trends, comparison to industry (industrials)
| Paycom Software Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 0.02 | 1.42 |
| Dec 31, 2021 | 0.03 | 1.37 |
| Dec 31, 2020 | 0.05 | 1.82 |
| Dec 31, 2019 | 0.06 | 1.82 |
| Dec 31, 2018 | 0.10 | 1.85 |
| Dec 31, 2017 | 0.26 | 1.65 |
| Dec 31, 2016 | 0.26 | 1.54 |
| Dec 31, 2015 | 0.26 | 1.51 |
| Dec 31, 2014 | 0.36 | 1.89 |
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).