Net Profit Margin
since 2014
Calculation
Paycom Software Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 20.46% | = | 100 | × | 281,389) | ÷ | 1,375,218) |
| Dec 31, 2021 | 18.57% | = | 100 | × | 195,960) | ÷ | 1,055,524) |
| Dec 31, 2020 | 17.05% | = | 100 | × | 143,453) | ÷ | 841,434) |
| Dec 31, 2019 | 24.48% | = | 100 | × | 180,576) | ÷ | 737,671) |
| Dec 31, 2018 | 24.20% | = | 100 | × | 137,065) | ÷ | 566,336) |
| Dec 31, 2017 | 15.43% | = | 100 | × | 66,807) | ÷ | 433,047) |
| Dec 31, 2016 | 13.32% | = | 100 | × | 43,840) | ÷ | 329,141) |
| Dec 31, 2015 | 9.32% | = | 100 | × | 20,945) | ÷ | 224,653) |
| Dec 31, 2014 | 3.75% | = | 100 | × | 5,663) | ÷ | 150,929) |
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
Paycom Software Inc. demonstrated substantial growth in both top-line revenue and bottom-line profitability between 2014 and 2022. Revenues increased from US$ 150.9 million to US$ 1.375 billion, while net income rose from US$ 5.7 million to US$ 281.4 million during the same period.
- Profitability Expansion (2014–2019)
- A period of consistent margin expansion is evident from 2014 to 2019. The net profit margin rose steadily from 3.75% to a peak of 24.48%. This trajectory suggests significant operational leverage, where revenue growth outpaced the growth of operating expenses, leading to increased efficiency as the organization scaled.
- Margin Contraction (2020)
- A notable decline in profitability occurred in 2020, with the net profit margin dropping to 17.05%. This contraction is observed despite a continued increase in revenues to US$ 841.4 million, indicating a temporary increase in relative operating costs or an unexpected impact on expenses during that fiscal year.
- Recovery and Stabilization (2021–2022)
- Following the 2020 dip, a recovery trend is observed. Net profit margins increased to 18.57% in 2021 and further to 20.46% by the end of 2022. This upward movement indicates a restoration of profitability levels, although they remained below the peak achieved in 2019.
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Comparison to Industry (Industrials)
Paycom Software Inc., net profit margin, long-term trends, comparison to industry (industrials)
| Paycom Software Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 20.46% | 5.04% |
| Dec 31, 2021 | 18.57% | 5.85% |
| Dec 31, 2020 | 17.05% | 0.09% |
| Dec 31, 2019 | 24.48% | 4.11% |
| Dec 31, 2018 | 24.20% | 4.75% |
| Dec 31, 2017 | 15.43% | 5.79% |
| Dec 31, 2016 | 13.32% | 7.43% |
| Dec 31, 2015 | 9.32% | 6.48% |
| Dec 31, 2014 | 3.75% | 8.76% |
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).