Return on Assets (ROA)
since 2014
Calculation
Paycom Software Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 7.21% | = | 100 | × | 281,389) | ÷ | 3,902,513) |
| Dec 31, 2021 | 6.09% | = | 100 | × | 195,960) | ÷ | 3,215,145) |
| Dec 31, 2020 | 5.50% | = | 100 | × | 143,453) | ÷ | 2,607,912) |
| Dec 31, 2019 | 7.26% | = | 100 | × | 180,576) | ÷ | 2,486,917) |
| Dec 31, 2018 | 9.01% | = | 100 | × | 137,065) | ÷ | 1,521,926) |
| Dec 31, 2017 | 4.93% | = | 100 | × | 66,807) | ÷ | 1,355,164) |
| Dec 31, 2016 | 4.06% | = | 100 | × | 43,840) | ÷ | 1,078,613) |
| Dec 31, 2015 | 2.39% | = | 100 | × | 20,945) | ÷ | 876,773) |
| Dec 31, 2014 | 0.71% | = | 100 | × | 5,663) | ÷ | 798,942) |
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 financial performance between 2014 and 2022 is characterized by aggressive growth in both profitability and the asset base, accompanied by fluctuating levels of asset utilization efficiency.
- Profitability and Asset Expansion
- Net income demonstrated a consistent and substantial upward trajectory, increasing from $5.66 million in 2014 to $281.39 million in 2022. Parallel to this, total assets grew from $798.94 million to $3.90 billion. The scale of expansion is most notable between 2018 and 2019, where total assets increased by approximately $965 million in a single fiscal year.
- ROA Performance and Peak Efficiency
- The Return on Assets (ROA) experienced a period of rapid improvement from 2014 to 2018, rising from 0.71% to a peak of 9.01%. This indicates a phase where income growth significantly outpaced asset accumulation, resulting in heightened operational efficiency.
- Asset Productivity Compression and Recovery
- A decline in ROA was observed from 2019 to 2020, with the ratio dropping to 5.50%. This compression is attributable to the sharp increase in the asset base in 2019 combined with a temporary decrease in net income in 2020. Following this dip, a recovery trend emerged, with ROA climbing to 6.09% in 2021 and reaching 7.21% by 2022, suggesting a successful realignment of increased assets with profit generation.
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Comparison to Industry (Industrials)
Paycom Software Inc., ROA, long-term trends, comparison to industry (industrials)
| Paycom Software Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 7.21% | 3.31% |
| Dec 31, 2021 | 6.09% | 3.40% |
| Dec 31, 2020 | 5.50% | 0.04% |
| Dec 31, 2019 | 7.26% | 2.56% |
| Dec 31, 2018 | 9.01% | 3.16% |
| Dec 31, 2017 | 4.93% | 3.59% |
| Dec 31, 2016 | 4.06% | 4.55% |
| Dec 31, 2015 | 2.39% | 3.52% |
| Dec 31, 2014 | 0.71% | 4.31% |
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).