Stock Analysis on Net
Stock Analysis on Net

Paycom Software Inc. (NYSE:PAYC)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Analysis of Long-term (Investment) Activity Ratios 
Quarterly Data

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Long-term Activity Ratios (Summary)

Paycom Software Inc., long-term (investment) activity ratios (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Net fixed asset turnover 3.48 3.50 3.50 3.42 3.36 3.23 3.14 3.02 3.01 2.90 2.89 2.95 2.95 2.97 3.07 3.09 3.10 3.32 3.27 3.20 — — —
Total asset turnover 0.42 0.39 0.35 0.35 0.39 0.25 0.21 0.33 0.24 0.29 0.26 0.32 0.33 0.41 0.34 0.30 0.44 0.36 0.30 0.37 — — —
Equity turnover 1.15 1.11 1.10 1.16 1.20 1.22 1.13 1.18 1.20 1.18 1.17 1.28 1.29 1.35 1.30 1.40 1.46 1.50 1.54 1.69 — — —

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

Net Fixed Asset Turnover
The net fixed asset turnover ratio is presented from the first quarter of 2018 onward, showing a generally stable to slightly increasing trend over the observed periods. Starting at 3.2 in March 2018, the ratio experienced mild fluctuations but remained in a relatively narrow range, ending at 3.48 by the third quarter of 2023. Notably, there is a slight dip around 2020 but the ratio rebounded steadily thereafter, demonstrating improving efficiency in using net fixed assets to generate sales. The upward trend in recent quarters indicates enhanced asset utilization.
Total Asset Turnover
The total asset turnover ratio exhibits more variability and a less consistent pattern. Initial values in 2018 fluctuated, with a notable peak of 0.44 in December 2018, followed by declines and recoveries through subsequent years. The ratio dropped to lower levels around 2021, reaching a trough of 0.21 in the second quarter of 2022. However, from late 2022 to 2023, there was a distinct rebound, climbing up to 0.42 by the third quarter of 2023. This suggests periods of reduced efficiency in utilizing total assets, with signs of recent improvement.
Equity Turnover
The equity turnover ratio shows a declining trend over the timeline. It started at 1.69 in early 2018 and gradually decreased to around 1.15 by the third quarter of 2023. Though the ratio experienced minor fluctuations, the overall trajectory indicates diminishing efficiency in generating sales from shareholders' equity. The steady downturn suggests either an increasing equity base outpacing sales growth or relatively slower sales expansion compared to equity growth.

Net Fixed Asset Turnover

Paycom Software Inc., net fixed asset turnover calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Revenues 406,303 401,139 451,637 370,608 334,167 316,924 353,519 284,986 256,194 242,146 272,198 220,947 196,532 181,587 242,368 193,409 175,006 169,313 199,943 150,332 133,288 128,800 153,916
Property and equipment, net 468,282 444,992 421,017 402,448 383,860 374,940 362,505 348,953 329,296 320,997 301,579 285,218 275,624 266,831 254,423 238,458 224,035 196,371 187,511 176,962 168,397 165,370 159,561
Long-term Activity Ratio
Net fixed asset turnover1 3.48 3.50 3.50 3.42 3.36 3.23 3.14 3.02 3.01 2.90 2.89 2.95 2.95 2.97 3.07 3.09 3.10 3.32 3.27 3.20 — — —

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2023 Calculation
Net fixed asset turnover = (RevenuesQ3 2023 + RevenuesQ2 2023 + RevenuesQ1 2023 + RevenuesQ4 2022) ÷ Property and equipment, net
= (406,303 + 401,139 + 451,637 + 370,608) ÷ 468,282 = 3.48

Revenues
The revenue figures exhibit a consistent upward trend over the observed quarters, with values increasing from approximately $154 million in March 2018 to $451.6 million by March 2023. Notable fluctuations are observed within each year, indicating potential seasonality or quarterly business cycle effects. Significant growth phases include the jump from March 2019 ($199.9 million) to March 2020 ($242.4 million) and an accelerated increase from March 2022 ($353.5 million) to March 2023 ($451.6 million). Though some quarters show slight dips (e.g., June 2020, June 2023), the overall trajectory reflects strong revenue expansion.
Property and Equipment, Net
The net value of property and equipment demonstrates a steady increase across the periods, rising from approximately $159.6 million in March 2018 to nearly $468.3 million in September 2023. This indicates continuous investment in fixed assets. The growth is relatively smooth without abrupt changes, suggesting planned and managed capital expenditure increments rather than sporadic investments. The increase in fixed assets supports the revenue growth, potentially providing capacity for expanding operations.
Net Fixed Asset Turnover Ratio
The net fixed asset turnover ratio, available only from late 2018 onward, fluctuates slightly but shows an overall positive trend. Starting around 3.1 in December 2018, it dips marginally below 3.0 several times during 2019 and 2020, indicating a temporary decrease in revenue generated per unit of fixed assets. From 2021 onward, the ratio steadily improves to a peak around 3.5 in late 2022 and remains stable near that level through September 2023. This upward trend suggests enhanced efficiency in using fixed assets to generate sales over time.
Summary of Trends and Insights
Collectively, the data suggest that the company has been expanding its asset base while successfully growing revenues, with efficiency in asset utilization improving in recent years. The stable investment in property and equipment aligns with the increased revenue scale, and the rising net fixed asset turnover ratio points to effective management of assets to drive sales. Minor quarterly fluctuations are present but do not detract from the overall positive momentum in financial performance metrics.

Total Asset Turnover

Paycom Software Inc., total asset turnover calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Revenues 406,303 401,139 451,637 370,608 334,167 316,924 353,519 284,986 256,194 242,146 272,198 220,947 196,532 181,587 242,368 193,409 175,006 169,313 199,943 150,332 133,288 128,800 153,916
Total assets 3,856,101 3,951,341 4,241,622 3,902,513 3,314,570 4,891,703 5,444,574 3,215,145 4,218,038 3,233,087 3,406,773 2,607,912 2,485,199 1,921,500 2,309,725 2,486,917 1,592,027 1,826,192 2,062,828 1,521,926 1,468,186 1,418,965 1,608,130
Long-term Activity Ratio
Total asset turnover1 0.42 0.39 0.35 0.35 0.39 0.25 0.21 0.33 0.24 0.29 0.26 0.32 0.33 0.41 0.34 0.30 0.44 0.36 0.30 0.37 — — —

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2023 Calculation
Total asset turnover = (RevenuesQ3 2023 + RevenuesQ2 2023 + RevenuesQ1 2023 + RevenuesQ4 2022) ÷ Total assets
= (406,303 + 401,139 + 451,637 + 370,608) ÷ 3,856,101 = 0.42

Revenues
Revenues show a generally increasing trend over the entire period from March 2018 to September 2023. Initial quarters display moderate fluctuations with values ranging roughly between 128,800 and 150,332 thousand USD in 2018, followed by a notable increase starting in 2019. The quarterly revenues peak in March 2023 at 451,637 thousand USD, more than doubling from early 2018 levels. Despite some volatility, including temporary declines or slower growth in mid-2020 and late 2022, the overall trajectory is upward, indicating sustained revenue growth.
Total assets
Total assets exhibit considerable variation across the period, with values rising from approximately 1,608,130 thousand USD in March 2018 to a peak exceeding 5,444,574 thousand USD in March 2022. This represents significant asset growth, particularly evident in 2021 and early 2022, suggesting substantial investments or acquisitions. However, after this peak in early 2022, total assets experience a decline, falling back to approximately 3,856,101 thousand USD by September 2023. This decrease could be due to asset disposals, depreciation, or changes in asset valuations.
Total asset turnover ratio
The total asset turnover ratio, measuring the efficiency of asset use in generating revenue, varies throughout the periods with values generally between 0.21 and 0.44. Initial values around 0.3 to 0.37 in 2018-2019 indicate moderate efficiency. The ratio tends to decline in 2020 and 2021, reaching lows near 0.21 to 0.24, suggesting less effective use of assets during these periods. Improvement is visible from late 2021 onwards, with the ratio increasing back above 0.35 in 2023, indicating enhanced asset utilization despite fluctuations in total assets. The increased turnover in 2023 aligns with rising revenues, implying more effective revenue generation relative to asset base during this recent period.
Summary Insight
Overall, the data outlines a company experiencing robust revenue growth alongside fluctuating asset levels. The sharp increase in assets during 2021 and early 2022 followed by a notable decrease suggests strategic asset management activities. Meanwhile, fluctuations in the total asset turnover ratio highlight periods of variable operational efficiency, with recent improvements signaling better asset utilization to drive revenue. The combination of rising revenues and improving turnover ratio in the latest quarters points toward strengthening operational performance.

Equity Turnover

Paycom Software Inc., equity turnover calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Revenues 406,303 401,139 451,637 370,608 334,167 316,924 353,519 284,986 256,194 242,146 272,198 220,947 196,532 181,587 242,368 193,409 175,006 169,313 199,943 150,332 133,288 128,800 153,916
Stockholders’ equity 1,421,309 1,406,685 1,334,471 1,182,607 1,076,380 994,139 1,009,020 893,714 825,341 792,256 745,476 655,643 632,399 585,853 599,788 526,628 474,898 434,762 398,553 334,753 360,377 329,738 333,033
Long-term Activity Ratio
Equity turnover1 1.15 1.11 1.10 1.16 1.20 1.22 1.13 1.18 1.20 1.18 1.17 1.28 1.29 1.35 1.30 1.40 1.46 1.50 1.54 1.69 — — —

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2023 Calculation
Equity turnover = (RevenuesQ3 2023 + RevenuesQ2 2023 + RevenuesQ1 2023 + RevenuesQ4 2022) ÷ Stockholders’ equity
= (406,303 + 401,139 + 451,637 + 370,608) ÷ 1,421,309 = 1.15

Over the observed periods, the company's revenues exhibited a general upward trajectory with some fluctuations. Beginning near $154 million in the first quarter of 2018, revenues reached over $451 million by the first quarter of 2023. Notably, there were periodic dips, such as between the fourth quarter of 2019 and second quarter of 2020, likely influenced by external market factors, but the overall trend remained positive with a consistent acceleration in the later years.

Stockholders’ equity demonstrated a steady increase throughout the timeline. Starting at approximately $333 million in early 2018, it rose to about $1.42 billion by the third quarter of 2023. This confirmed a robust capitalization growth, indicating retention of earnings or capital injections aligning with business expansion. Minor short-term declines or plateaus are present but are negligible compared to the long-term growth trend.

The equity turnover ratio, available from the first quarter of 2019 onwards, showed a gradual decline. It began at 1.69 in the first quarter of 2019 and declined to around 1.11-1.15 in 2023. This reduction suggests that while revenues were increasing, the efficiency with which equity generated revenue was slightly decreasing. It may indicate an increased equity base relative to generated sales or changes in operational dynamics affecting asset utilization efficiency.

Revenues
Displayed overall growth, nearly tripling between early 2018 and 2023 with intermittent short-term volatility.
Stockholders’ Equity
Consistently increased, growing over fourfold from 2018 to 2023, indicating strong financial foundation and reinvestment.
Equity Turnover Ratio
Gradually declined over the period from 1.69 to roughly 1.11-1.15, signaling a decrease in revenue generated per dollar of equity.