Liquidity ratios measure the company ability to meet its short-term obligations.

Paycom Software Inc., liquidity ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current ratio	1.16	1.13	1.09	1.07	1.03
Quick ratio	0.18	0.14	0.09	0.08	0.05
Cash ratio	0.17	0.14	0.09	0.08	0.04

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Liquidity ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Paycom Software Inc. current ratio improved from 2020 to 2021 and from 2021 to 2022.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Paycom Software Inc. quick ratio improved from 2020 to 2021 and from 2021 to 2022.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Paycom Software Inc. cash ratio improved from 2020 to 2021 and from 2021 to 2022.

Paycom Software Inc., current ratio calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Current assets	2,764,172)	2,252,038)	1,864,605)	1,871,100)	1,064,622)
Current liabilities	2,377,037)	1,990,410)	1,718,030)	1,753,522)	1,028,682)
Liquidity Ratio
Current ratio¹	1.16	1.13	1.09	1.07	1.03
Benchmarks
Current Ratio, Industry
Industrials	1.20	1.29	1.41	1.16	—

¹ 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,764,172 ÷ 2,377,037 = 1.16

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Liquidity ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Paycom Software Inc. current ratio improved from 2020 to 2021 and from 2021 to 2022.

Paycom Software Inc., quick ratio calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Cash and cash equivalents	400,730)	277,978)	151,710)	133,667)	45,718)
Accounts receivable	22,843)	9,490)	9,130)	9,298)	3,414)
Total quick assets	423,573)	287,468)	160,840)	142,965)	49,132)

Current liabilities	2,377,037)	1,990,410)	1,718,030)	1,753,522)	1,028,682)
Liquidity Ratio
Quick ratio¹	0.18	0.14	0.09	0.08	0.05
Benchmarks
Quick Ratio, Industry
Industrials	0.72	0.80	0.88	0.69	—

¹ 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 423,573 ÷ 2,377,037 = 0.18

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Liquidity ratio	Description	The company
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Paycom Software Inc. quick ratio improved from 2020 to 2021 and from 2021 to 2022.

Paycom Software Inc., cash ratio calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Cash and cash equivalents	400,730)	277,978)	151,710)	133,667)	45,718)
Total cash assets	400,730)	277,978)	151,710)	133,667)	45,718)

Current liabilities	2,377,037)	1,990,410)	1,718,030)	1,753,522)	1,028,682)
Liquidity Ratio
Cash ratio¹	0.17	0.14	0.09	0.08	0.04
Benchmarks
Cash Ratio, Industry
Industrials	0.32	0.39	0.47	0.34	—

¹ 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 400,730 ÷ 2,377,037 = 0.17

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Liquidity ratio	Description	The company
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Paycom Software Inc. cash ratio improved from 2020 to 2021 and from 2021 to 2022.

Paycom Software Inc. (NYSE:PAYC)

Analysis of Liquidity Ratios