Paycom Software Inc. (NYSE:PAYC)

The financial data exhibits significant growth in net income and stockholders’ equity over the years from 2014 to 2022. The net income demonstrates a robust upward trend, increasing from 5,663 thousand US dollars in 2014 to 281,389 thousand US dollars in 2022. This represents a substantial enhancement in profitability, with particularly noticeable acceleration observed between 2017 and 2019, and again from 2021 to 2022.

Stockholders’ equity also shows a consistent and strong increase throughout the observed period. It rose from 74,138 thousand US dollars in 2014 to 1,182,607 thousand US dollars by the end of 2022. This growth suggests continuous strengthening of the company’s capital base, potentially through retained earnings and/or equity financing activities. The most marked increases appear between 2017 and 2019, and then continue at a steady pace through 2022.

The Return on Equity (ROE) percentage illustrates how effectively the company is utilizing its equity to generate profit. ROE increased sharply from 7.64% in 2014 to a peak of 49.34% in 2017, indicating highly efficient use of equity capital during that period. After peaking, ROE declined to 21.88% in 2020 and stabilized in the low twenty percent range through 2022. This decrease in ROE after 2017 may reflect the relatively faster growth in equity compared to net income, or other operational and capital structure changes.

Net income

Exhibited a steady and substantial increase over the nine-year period, nearly fiftyfold from 2014 to 2022, reflecting strong profitability growth.

Stockholders’ equity

Showed continuous expansion more than fifteenfold over the same period, indicating a solid financial foundation and increasing shareholder value.

Return on Equity (ROE)

Peaked at nearly 50% in 2017, suggesting an optimal efficiency of capital use mid-period. Subsequently, it declined and stabilized around 22% in recent years, implying a moderation in equity utilization efficiency amid significant equity base growth.