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 Profitability Ratios

Microsoft Excel

Profitability ratios measure the company ability to generate profitable sales from its resources (assets).

Profitability Ratios (Summary)

Paycom Software Inc., profitability ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Return on Sales
Gross profit margin 84.53% 84.66% 85.32% 85.12% 83.97%
Operating profit margin 27.54% 24.02% 22.12% 30.67% 30.67%
Net profit margin 20.46% 18.57% 17.05% 24.48% 24.20%
Return on Investment
Return on equity (ROE) 23.79% 21.93% 21.88% 34.29% 40.95%
Return on assets (ROA) 7.21% 6.09% 5.50% 7.26% 9.01%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Paycom Software Inc. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Paycom Software Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Paycom Software Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Paycom Software Inc. ROE improved from 2020 to 2021 and from 2021 to 2022.
ROA A profitability ratio calculated as net income divided by total assets. Paycom Software Inc. ROA improved from 2020 to 2021 and from 2021 to 2022.

Gross Profit Margin

Paycom Software Inc., gross profit margin calculation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Gross profit 1,162,477 893,638 717,888 627,924 475,573
Revenues 1,375,218 1,055,524 841,434 737,671 566,336
Profitability Ratio
Gross profit margin1 84.53% 84.66% 85.32% 85.12% 83.97%

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).

1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 1,162,477 ÷ 1,375,218 = 84.53%

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Paycom Software Inc. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Operating Profit Margin

Paycom Software Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Operating income 378,679 253,567 186,123 226,224 173,715
Revenues 1,375,218 1,055,524 841,434 737,671 566,336
Profitability Ratio
Operating profit margin1 27.54% 24.02% 22.12% 30.67% 30.67%
Benchmarks
Operating Profit Margin, Industry
Industrials 9.06% 9.24% 3.13% 9.69% —

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).

1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 378,679 ÷ 1,375,218 = 27.54%

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Paycom Software Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Net Profit Margin

Paycom Software Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net income 281,389 195,960 143,453 180,576 137,065
Revenues 1,375,218 1,055,524 841,434 737,671 566,336
Profitability Ratio
Net profit margin1 20.46% 18.57% 17.05% 24.48% 24.20%
Benchmarks
Net Profit Margin, Industry
Industrials 5.04% 5.85% 0.09% 4.11% —

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).

1 2022 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 281,389 ÷ 1,375,218 = 20.46%

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Paycom Software Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Return on Equity (ROE)

Paycom Software Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net income 281,389 195,960 143,453 180,576 137,065
Stockholders’ equity 1,182,607 893,714 655,643 526,628 334,753
Profitability Ratio
ROE1 23.79% 21.93% 21.88% 34.29% 40.95%
Benchmarks
ROE, Industry
Industrials 15.38% 15.38% 0.24% 14.56% —

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).

1 2022 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 281,389 ÷ 1,182,607 = 23.79%

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Paycom Software Inc. ROE improved from 2020 to 2021 and from 2021 to 2022.

Return on Assets (ROA)

Paycom Software Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net income 281,389 195,960 143,453 180,576 137,065
Total assets 3,902,513 3,215,145 2,607,912 2,486,917 1,521,926
Profitability Ratio
ROA1 7.21% 6.09% 5.50% 7.26% 9.01%
Benchmarks
ROA, Industry
Industrials 3.31% 3.40% 0.04% 2.56% —

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).

1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 281,389 ÷ 3,902,513 = 7.21%

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Paycom Software Inc. ROA improved from 2020 to 2021 and from 2021 to 2022.