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

Short-term Activity Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

Paycom Software Inc., short-term (operating) activity ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Turnover Ratios
Inventory turnover	132.38	143.14	107.34	94.77	113.88
Receivables turnover	60.20	111.22	92.16	79.34	165.89
Payables turnover	13.25	28.05	18.20	21.73	14.43
Working capital turnover	3.55	4.03	5.74	6.27	15.76
Average No. Days
Average inventory processing period	3	3	3	4	3
Add: Average receivable collection period	6	3	4	5	2
Operating cycle	9	6	7	9	5
Less: Average payables payment period	28	13	20	17	25
Cash conversion cycle	-19	-7	-13	-8	-20

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).

Download chart

Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Paycom Software Inc. inventory turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Paycom Software Inc. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Paycom Software Inc. payables turnover ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Paycom Software Inc. working capital turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Download chart

Short-term activity ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Paycom Software Inc. number of days of receivables outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Paycom Software Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Paycom Software Inc. number of days of payables outstanding decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Paycom Software Inc. cash conversion cycle deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Paycom Software Inc., inventory turnover 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)
Cost of revenues	212,741)	161,886)	123,546)	109,747)	90,763)
Inventory	1,607)	1,131)	1,151)	1,158)	797)
Short-term Activity Ratio
Inventory turnover¹	132.38	143.14	107.34	94.77	113.88
Benchmarks
Inventory Turnover, Industry
Industrials	4.28	4.03	3.71	4.25	—

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
Inventory turnover = Cost of revenues ÷ Inventory
= 212,741 ÷ 1,607 = 132.38

Download chart

Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Paycom Software Inc. inventory turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Paycom Software Inc., receivables turnover 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)
Revenues	1,375,218)	1,055,524)	841,434)	737,671)	566,336)
Accounts receivable	22,843)	9,490)	9,130)	9,298)	3,414)
Short-term Activity Ratio
Receivables turnover¹	60.20	111.22	92.16	79.34	165.89
Benchmarks
Receivables Turnover, Industry
Industrials	8.17	7.76	7.57	8.09	—

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
Receivables turnover = Revenues ÷ Accounts receivable
= 1,375,218 ÷ 22,843 = 60.20

Download chart

Short-term activity ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Paycom Software Inc. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Paycom Software Inc., payables turnover 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)
Cost of revenues	212,741)	161,886)	123,546)	109,747)	90,763)
Accounts payable	16,054)	5,772)	6,787)	5,051)	6,288)
Short-term Activity Ratio
Payables turnover¹	13.25	28.05	18.20	21.73	14.43
Benchmarks
Payables Turnover, Industry
Industrials	7.83	7.81	7.49	7.73	—

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
Payables turnover = Cost of revenues ÷ Accounts payable
= 212,741 ÷ 16,054 = 13.25

Download chart

Short-term activity ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Paycom Software Inc. payables turnover ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Paycom Software Inc., working capital turnover 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)
Less: Current liabilities	2,377,037)	1,990,410)	1,718,030)	1,753,522)	1,028,682)
Working capital	387,135)	261,628)	146,575)	117,578)	35,940)

Revenues	1,375,218)	1,055,524)	841,434)	737,671)	566,336)
Short-term Activity Ratio
Working capital turnover¹	3.55	4.03	5.74	6.27	15.76
Benchmarks
Working Capital Turnover, Industry
Industrials	10.34	6.90	4.52	12.12	—

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
Working capital turnover = Revenues ÷ Working capital
= 1,375,218 ÷ 387,135 = 3.55

Download chart

Short-term activity ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Paycom Software Inc. working capital turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Paycom Software Inc., average inventory processing period calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data
Inventory turnover	132.38	143.14	107.34	94.77	113.88
Short-term Activity Ratio (no. days)
Average inventory processing period¹	3	3	3	4	3
Benchmarks (no. days)
Average Inventory Processing Period, Industry
Industrials	85	91	99	86	—

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 132.38 = 3

Download chart

Short-term activity ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Paycom Software Inc., average receivable collection period calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data
Receivables turnover	60.20	111.22	92.16	79.34	165.89
Short-term Activity Ratio (no. days)
Average receivable collection period¹	6	3	4	5	2
Benchmarks (no. days)
Average Receivable Collection Period, Industry
Industrials	45	47	48	45	—

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 60.20 = 6

Download chart

Short-term activity ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Paycom Software Inc. number of days of receivables outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Paycom Software Inc., operating cycle calculation, comparison to benchmarks

No. days

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data
Average inventory processing period	3	3	3	4	3
Average receivable collection period	6	3	4	5	2
Short-term Activity Ratio
Operating cycle¹	9	6	7	9	5
Benchmarks
Operating Cycle, Industry
Industrials	130	138	147	131	—

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 cycle = Average inventory processing period + Average receivable collection period
= 3 + 6 = 9

Download chart

Short-term activity ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Paycom Software Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Paycom Software Inc., average payables payment period calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data
Payables turnover	13.25	28.05	18.20	21.73	14.43
Short-term Activity Ratio (no. days)
Average payables payment period¹	28	13	20	17	25
Benchmarks (no. days)
Average Payables Payment Period, Industry
Industrials	47	47	49	47	—

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 13.25 = 28

Download chart

Short-term activity ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Paycom Software Inc. number of days of payables outstanding decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Paycom Software Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data
Average inventory processing period	3	3	3	4	3
Average receivable collection period	6	3	4	5	2
Average payables payment period	28	13	20	17	25
Short-term Activity Ratio
Cash conversion cycle¹	-19	-7	-13	-8	-20
Benchmarks
Cash Conversion Cycle, Industry
Industrials	83	91	98	84	—

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 3 + 6 – 28 = -19

Download chart

Short-term activity ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Paycom Software Inc. cash conversion cycle deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Paycom Software Inc. (NYSE:PAYC)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle