Paycom Software Inc., balance sheet: debt

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current portion of long-term debt	—)	1,775)	1,775)	1,775)	1,775)
Net long-term debt, less current portion	29,000)	27,380)	29,119)	30,858)	32,614)
Total long-term debt (carrying amount)	29,000)	29,155)	30,894)	32,633)	34,389)

Download chart

Debt item	Description	The company
Total long-term debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Paycom Software Inc. total debt decreased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022
Selected Financial Data (US$ in thousands)
Total long-term debt (fair value)	29,000)
Financial Ratio
Debt, fair value to carrying amount ratio	1.00

Weighted-average interest rate on debt: 3.70%

Interest rate	Debt amount¹	Interest rate × Debt amount
3.70%	29,000)	1,073)
Total	29,000)	1,073)
3.70%

¹ US$ in thousands

² Weighted-average interest rate = 100 × 1,073 ÷ 29,000 = 3.70%

Paycom Software Inc., interest costs incurred

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Interest expense	2,536)	—)	19)	940)	766)
Interest costs capitalized	900)	1,400)	1,500)	600)	800)
Interest costs incurred	3,436)	1,400)	1,519)	1,540)	1,566)

Download chart

Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Paycom Software Inc. interest expense decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Interest costs capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Paycom Software Inc. interest costs capitalized decreased from 2020 to 2021 and from 2021 to 2022.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Paycom Software Inc. interest costs incurred decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	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)
Add: Income tax expense	108,189)	60,002)	42,483)	45,511)	37,646)
Add: Interest expense	2,536)	—)	19)	940)	766)
Earnings before interest and tax (EBIT)	392,114)	255,962)	185,955)	227,027)	175,477)

Interest costs incurred	3,436)	1,400)	1,519)	1,540)	1,566)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	154.62	—	9,787.11	241.52	229.08
Adjusted interest coverage ratio (with capitalized interest)²	114.12	182.83	122.42	147.42	112.05

2022 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 392,114 ÷ 2,536 = 154.62

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 392,114 ÷ 3,436 = 114.12

Download chart

Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Paycom Software Inc. adjusted interest coverage ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Paycom Software Inc. (NYSE:PAYC)

Analysis of Debt