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
The analysis of the financial data reveals a consistent upward trajectory in both net income and revenues over the examined period. Starting from 2014, net income shows a steady increase year over year with notable acceleration from 2017 onwards. Revenues follow a similar pattern, with significant growth each year, culminating in a more than ninefold increase by 2022 compared to the initial year.
The net profit margin demonstrates variability throughout the years but maintains an overall positive trend. It increases sharply from 2014 to 2018, reaching its peak at 24.2%. After this peak, the margin experiences a decline in 2019 and 2020 before recovering somewhat in the subsequent years, ultimately reaching 20.46% in 2022. This indicates that while profitability experienced slight fluctuations, it remained at a relatively strong level over the period.
- Net Income Trend
- Rising consistently each year, net income grew from approximately $5.7 million in 2014 to $281.4 million in 2022. The most substantial increases appear between 2017 and 2019, though a dip occurred in 2020 before recovery resumed.
- Revenue Growth
- Revenues increased steadily, starting at around $150.9 million in 2014 and achieving nearly $1.4 billion by 2022. The data reflects strong sales growth year on year without any downturns.
- Net Profit Margin Fluctuations
- The margin rose from a low of 3.75% in 2014 to peak over 24% in 2018 and 2019, demonstrating improving profitability. A decrease occurred in 2020 to about 17%, likely influenced by extraordinary conditions, followed by a gradual increase back above 20% by 2022.
Overall, the financial performance indicates robust revenue generation paired with improving profitability, despite some periods of margin compression. The data suggests effective management of costs relative to revenue growth, supporting sustained expansion and enhanced profit levels over the nine-year span evaluated.
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).