Adjusted Financial Ratios (Summary)
Adjusted Total Asset Turnover
Adjusted Current Ratio
Adjusted Debt to Equity
Adjusted Debt to Capital
Adjusted Financial Leverage
Adjusted Net Profit Margin
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Paycom Software Inc., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Activity Ratio
Total Asset Turnover
Reported	0.35	0.33	0.32	0.30	0.37
Adjusted	0.36	0.33	0.33	0.30	0.37
Liquidity Ratio
Current Ratio
Reported	1.16	1.13	1.09	1.07	1.03
Adjusted	1.17	1.14	1.09	1.07	1.04
Solvency Ratios
Debt to Equity
Reported	0.02	0.03	0.05	0.06	0.10
Adjusted	0.05	0.05	0.07	0.09	0.13
Debt to Capital
Reported	0.02	0.03	0.04	0.06	0.09
Adjusted	0.05	0.05	0.06	0.08	0.12
Financial Leverage
Reported	3.30	3.60	3.98	4.72	4.55
Adjusted	2.71	2.82	3.05	3.58	3.30
Profitability Ratios
Net Profit Margin
Reported	20.46%	18.57%	17.05%	24.48%	24.20%
Adjusted	20.88%	22.75%	20.59%	28.45%	29.54%
Return on Equity (ROE)
Reported	23.79%	21.93%	21.88%	34.29%	40.95%
Adjusted	20.16%	21.34%	20.51%	30.71%	36.45%
Return on Assets (ROA)
Reported	7.21%	6.09%	5.50%	7.26%	9.01%
Adjusted	7.44%	7.57%	6.73%	8.57%	11.05%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Paycom Software Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Paycom Software Inc. adjusted current ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Paycom Software Inc. adjusted debt-to-equity ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Paycom Software Inc. adjusted debt-to-capital ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Paycom Software Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Paycom Software Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Paycom Software Inc. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Paycom Software Inc. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Paycom Software Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Revenues	1,375,218)	1,055,524)	841,434)	737,671)	566,336)
Total assets	3,902,513)	3,215,145)	2,607,912)	2,486,917)	1,521,926)
Activity Ratio
Total asset turnover¹	0.35	0.33	0.32	0.30	0.37
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted revenues²	1,391,208)	1,070,124)	852,016)	749,264)	579,363)
Adjusted total assets³	3,902,513)	3,215,145)	2,607,912)	2,486,917)	1,549,125)
Activity Ratio
Adjusted total asset turnover⁴	0.36	0.33	0.33	0.30	0.37

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
Total asset turnover = Revenues ÷ Total assets
= 1,375,218 ÷ 3,902,513 = 0.35

² Adjusted revenues. See details »

³ Adjusted total assets. See details »

⁴ 2022 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 1,391,208 ÷ 3,902,513 = 0.36

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Paycom Software Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reported
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
Adjusted
Selected Financial Data (US$ in thousands)
Current assets	2,764,172)	2,252,038)	1,864,605)	1,871,100)	1,064,622)
Adjusted current liabilities²	2,357,212)	1,974,133)	1,704,463)	1,742,417)	1,019,702)
Liquidity Ratio
Adjusted current ratio³	1.17	1.14	1.09	1.07	1.04

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

² Adjusted current liabilities. See details »

³ 2022 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 2,764,172 ÷ 2,357,212 = 1.17

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

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Total debt	29,000)	29,155)	30,894)	32,633)	34,389)
Stockholders’ equity	1,182,607)	893,714)	655,643)	526,628)	334,753)
Solvency Ratio
Debt to equity¹	0.02	0.03	0.05	0.06	0.10
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt²	70,012)	60,067)	58,790)	61,318)	61,588)
Adjusted stockholders’ equity³	1,441,056)	1,140,644)	855,067)	694,089)	469,610)
Solvency Ratio
Adjusted debt to equity⁴	0.05	0.05	0.07	0.09	0.13

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
Debt to equity = Total debt ÷ Stockholders’ equity
= 29,000 ÷ 1,182,607 = 0.02

² Adjusted total debt. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2022 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 70,012 ÷ 1,441,056 = 0.05

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Solvency ratio	Description	The company
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Paycom Software Inc. adjusted debt-to-equity ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Total debt	29,000)	29,155)	30,894)	32,633)	34,389)
Total capital	1,211,607)	922,869)	686,537)	559,261)	369,142)
Solvency Ratio
Debt to capital¹	0.02	0.03	0.04	0.06	0.09
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt²	70,012)	60,067)	58,790)	61,318)	61,588)
Adjusted total capital³	1,511,068)	1,200,711)	913,857)	755,407)	531,198)
Solvency Ratio
Adjusted debt to capital⁴	0.05	0.05	0.06	0.08	0.12

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
Debt to capital = Total debt ÷ Total capital
= 29,000 ÷ 1,211,607 = 0.02

² Adjusted total debt. See details »

³ Adjusted total capital. See details »

⁴ 2022 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 70,012 ÷ 1,511,068 = 0.05

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Solvency ratio	Description	The company
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Paycom Software Inc. adjusted debt-to-capital ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Total assets	3,902,513)	3,215,145)	2,607,912)	2,486,917)	1,521,926)
Stockholders’ equity	1,182,607)	893,714)	655,643)	526,628)	334,753)
Solvency Ratio
Financial leverage¹	3.30	3.60	3.98	4.72	4.55
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets²	3,902,513)	3,215,145)	2,607,912)	2,486,917)	1,549,125)
Adjusted stockholders’ equity³	1,441,056)	1,140,644)	855,067)	694,089)	469,610)
Solvency Ratio
Adjusted financial leverage⁴	2.71	2.82	3.05	3.58	3.30

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
Financial leverage = Total assets ÷ Stockholders’ equity
= 3,902,513 ÷ 1,182,607 = 3.30

² Adjusted total assets. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2022 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 3,902,513 ÷ 1,441,056 = 2.71

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Paycom Software Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reported
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%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income²	290,466)	243,466)	175,416)	213,180)	171,169)
Adjusted revenues³	1,391,208)	1,070,124)	852,016)	749,264)	579,363)
Profitability Ratio
Adjusted net profit margin⁴	20.88%	22.75%	20.59%	28.45%	29.54%

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%

² Adjusted net income. See details »

³ Adjusted revenues. See details »

⁴ 2022 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenues
= 100 × 290,466 ÷ 1,391,208 = 20.88%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Paycom Software Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reported
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%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income²	290,466)	243,466)	175,416)	213,180)	171,169)
Adjusted stockholders’ equity³	1,441,056)	1,140,644)	855,067)	694,089)	469,610)
Profitability Ratio
Adjusted ROE⁴	20.16%	21.34%	20.51%	30.71%	36.45%

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

² Adjusted net income. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2022 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 290,466 ÷ 1,441,056 = 20.16%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Paycom Software Inc. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reported
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%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income²	290,466)	243,466)	175,416)	213,180)	171,169)
Adjusted total assets³	3,902,513)	3,215,145)	2,607,912)	2,486,917)	1,549,125)
Profitability Ratio
Adjusted ROA⁴	7.44%	7.57%	6.73%	8.57%	11.05%

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%

² Adjusted net income. See details »

³ Adjusted total assets. See details »

⁴ 2022 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 290,466 ÷ 3,902,513 = 7.44%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Paycom Software Inc. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Paycom Software Inc. (NYSE:PAYC)

Adjusted Financial Ratios

Adjusted Financial Ratios (Summary)

Paycom Software Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Current Ratio

Adjusted Debt to Equity

Adjusted Debt to Capital

Adjusted Financial Leverage

Adjusted Net Profit Margin

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)