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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Paycom Software Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2023 23.85% = 8.79% × 2.71
Jun 30, 2023 22.46% = 8.00% × 2.81
Mar 31, 2023 23.14% = 7.28% × 3.18
Dec 31, 2022 23.79% = 7.21% × 3.30
Sep 30, 2022 23.24% = 7.55% × 3.08
Jun 30, 2022 22.97% = 4.67% × 4.92
Mar 31, 2022 22.13% = 4.10% × 5.40
Dec 31, 2021 21.93% = 6.09% × 3.60
Sep 30, 2021 20.80% = 4.07% × 5.11
Jun 30, 2021 21.30% = 5.22% × 4.08
Mar 31, 2021 19.46% = 4.26% × 4.57
Dec 31, 2020 21.88% = 5.50% × 3.98
Sep 30, 2020 26.01% = 6.62% × 3.93
Jun 30, 2020 30.06% = 9.17% × 3.28
Mar 31, 2020 32.73% = 8.50% × 3.85
Dec 31, 2019 34.29% = 7.26% × 4.72
Sep 30, 2019 35.08% = 10.47% × 3.35
Jun 30, 2019 35.93% = 8.55% × 4.20
Mar 31, 2019 35.93% = 6.94% × 5.18
Dec 31, 2018 40.95% = 9.01% × 4.55
Sep 30, 2018 — = — × 4.07
Jun 30, 2018 — = — × 4.30
Mar 31, 2018 — = — × 4.83

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).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2023 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Paycom Software Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2023 23.85% = 20.80% × 0.42 × 2.71
Jun 30, 2023 22.46% = 20.28% × 0.39 × 2.81
Mar 31, 2023 23.14% = 20.96% × 0.35 × 3.18
Dec 31, 2022 23.79% = 20.46% × 0.35 × 3.30
Sep 30, 2022 23.24% = 19.40% × 0.39 × 3.08
Jun 30, 2022 22.97% = 18.85% × 0.25 × 4.92
Mar 31, 2022 22.13% = 19.64% × 0.21 × 5.40
Dec 31, 2021 21.93% = 18.57% × 0.33 × 3.60
Sep 30, 2021 20.80% = 17.31% × 0.24 × 5.11
Jun 30, 2021 21.30% = 18.11% × 0.29 × 4.08
Mar 31, 2021 19.46% = 16.65% × 0.26 × 4.57
Dec 31, 2020 21.88% = 17.05% × 0.32 × 3.98
Sep 30, 2020 26.01% = 20.21% × 0.33 × 3.93
Jun 30, 2020 30.06% = 22.23% × 0.41 × 3.28
Mar 31, 2020 32.73% = 25.16% × 0.34 × 3.85
Dec 31, 2019 34.29% = 24.48% × 0.30 × 4.72
Sep 30, 2019 35.08% = 23.99% × 0.44 × 3.35
Jun 30, 2019 35.93% = 23.93% × 0.36 × 4.20
Mar 31, 2019 35.93% = 23.38% × 0.30 × 5.18
Dec 31, 2018 40.95% = 24.20% × 0.37 × 4.55
Sep 30, 2018 — = — × — × 4.07
Jun 30, 2018 — = — × — × 4.30
Mar 31, 2018 — = — × — × 4.83

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).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2023 is the increase in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Paycom Software Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2023 23.85% = 0.71 × 0.99 × 29.27% × 0.42 × 2.71
Jun 30, 2023 22.46% = 0.71 × 0.99 × 28.96% × 0.39 × 2.81
Mar 31, 2023 23.14% = 0.72 × 0.99 × 29.24% × 0.35 × 3.18
Dec 31, 2022 23.79% = 0.72 × 0.99 × 28.51% × 0.35 × 3.30
Sep 30, 2022 23.24% = 0.72 × 1.00 × 26.92% × 0.39 × 3.08
Jun 30, 2022 22.97% = 0.73 × 1.00 × 25.95% × 0.25 × 4.92
Mar 31, 2022 22.13% = 0.77 × 1.00 × 25.37% × 0.21 × 5.40
Dec 31, 2021 21.93% = 0.77 × 1.00 × 24.25% × 0.33 × 3.60
Sep 30, 2021 20.80% = 0.77 × 1.00 × 22.45% × 0.24 × 5.11
Jun 30, 2021 21.30% = 0.79 × 1.00 × 22.89% × 0.29 × 4.08
Mar 31, 2021 19.46% = 0.75 × 1.00 × 22.13% × 0.26 × 4.57
Dec 31, 2020 21.88% = 0.77 × 1.00 × 22.10% × 0.32 × 3.98
Sep 30, 2020 26.01% = 0.78 × 1.00 × 25.88% × 0.33 × 3.93
Jun 30, 2020 30.06% = 0.78 × 1.00 × 28.66% × 0.41 × 3.28
Mar 31, 2020 32.73% = 0.78 × 1.00 × 32.43% × 0.34 × 3.85
Dec 31, 2019 34.29% = 0.80 × 1.00 × 30.78% × 0.30 × 4.72
Sep 30, 2019 35.08% = 0.80 × 0.99 × 30.06% × 0.44 × 3.35
Jun 30, 2019 35.93% = 0.81 × 0.99 × 29.85% × 0.36 × 4.20
Mar 31, 2019 35.93% = 0.77 × 0.99 × 30.34% × 0.30 × 5.18
Dec 31, 2018 40.95% = 0.78 × 1.00 × 30.98% × 0.37 × 4.55
Sep 30, 2018 — = — × — × — × — × 4.07
Jun 30, 2018 — = — × — × — × — × 4.30
Mar 31, 2018 — = — × — × — × — × 4.83

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).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2023 is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Paycom Software Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2023 8.79% = 20.80% × 0.42
Jun 30, 2023 8.00% = 20.28% × 0.39
Mar 31, 2023 7.28% = 20.96% × 0.35
Dec 31, 2022 7.21% = 20.46% × 0.35
Sep 30, 2022 7.55% = 19.40% × 0.39
Jun 30, 2022 4.67% = 18.85% × 0.25
Mar 31, 2022 4.10% = 19.64% × 0.21
Dec 31, 2021 6.09% = 18.57% × 0.33
Sep 30, 2021 4.07% = 17.31% × 0.24
Jun 30, 2021 5.22% = 18.11% × 0.29
Mar 31, 2021 4.26% = 16.65% × 0.26
Dec 31, 2020 5.50% = 17.05% × 0.32
Sep 30, 2020 6.62% = 20.21% × 0.33
Jun 30, 2020 9.17% = 22.23% × 0.41
Mar 31, 2020 8.50% = 25.16% × 0.34
Dec 31, 2019 7.26% = 24.48% × 0.30
Sep 30, 2019 10.47% = 23.99% × 0.44
Jun 30, 2019 8.55% = 23.93% × 0.36
Mar 31, 2019 6.94% = 23.38% × 0.30
Dec 31, 2018 9.01% = 24.20% × 0.37
Sep 30, 2018 — = — × —
Jun 30, 2018 — = — × —
Mar 31, 2018 — = — × —

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).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2023 is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Paycom Software Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2023 8.79% = 0.71 × 0.99 × 29.27% × 0.42
Jun 30, 2023 8.00% = 0.71 × 0.99 × 28.96% × 0.39
Mar 31, 2023 7.28% = 0.72 × 0.99 × 29.24% × 0.35
Dec 31, 2022 7.21% = 0.72 × 0.99 × 28.51% × 0.35
Sep 30, 2022 7.55% = 0.72 × 1.00 × 26.92% × 0.39
Jun 30, 2022 4.67% = 0.73 × 1.00 × 25.95% × 0.25
Mar 31, 2022 4.10% = 0.77 × 1.00 × 25.37% × 0.21
Dec 31, 2021 6.09% = 0.77 × 1.00 × 24.25% × 0.33
Sep 30, 2021 4.07% = 0.77 × 1.00 × 22.45% × 0.24
Jun 30, 2021 5.22% = 0.79 × 1.00 × 22.89% × 0.29
Mar 31, 2021 4.26% = 0.75 × 1.00 × 22.13% × 0.26
Dec 31, 2020 5.50% = 0.77 × 1.00 × 22.10% × 0.32
Sep 30, 2020 6.62% = 0.78 × 1.00 × 25.88% × 0.33
Jun 30, 2020 9.17% = 0.78 × 1.00 × 28.66% × 0.41
Mar 31, 2020 8.50% = 0.78 × 1.00 × 32.43% × 0.34
Dec 31, 2019 7.26% = 0.80 × 1.00 × 30.78% × 0.30
Sep 30, 2019 10.47% = 0.80 × 0.99 × 30.06% × 0.44
Jun 30, 2019 8.55% = 0.81 × 0.99 × 29.85% × 0.36
Mar 31, 2019 6.94% = 0.77 × 0.99 × 30.34% × 0.30
Dec 31, 2018 9.01% = 0.78 × 1.00 × 30.98% × 0.37
Sep 30, 2018 — = — × — × — × —
Jun 30, 2018 — = — × — × — × —
Mar 31, 2018 — = — × — × — × —

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).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2023 is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Paycom Software Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2023 20.80% = 0.71 × 0.99 × 29.27%
Jun 30, 2023 20.28% = 0.71 × 0.99 × 28.96%
Mar 31, 2023 20.96% = 0.72 × 0.99 × 29.24%
Dec 31, 2022 20.46% = 0.72 × 0.99 × 28.51%
Sep 30, 2022 19.40% = 0.72 × 1.00 × 26.92%
Jun 30, 2022 18.85% = 0.73 × 1.00 × 25.95%
Mar 31, 2022 19.64% = 0.77 × 1.00 × 25.37%
Dec 31, 2021 18.57% = 0.77 × 1.00 × 24.25%
Sep 30, 2021 17.31% = 0.77 × 1.00 × 22.45%
Jun 30, 2021 18.11% = 0.79 × 1.00 × 22.89%
Mar 31, 2021 16.65% = 0.75 × 1.00 × 22.13%
Dec 31, 2020 17.05% = 0.77 × 1.00 × 22.10%
Sep 30, 2020 20.21% = 0.78 × 1.00 × 25.88%
Jun 30, 2020 22.23% = 0.78 × 1.00 × 28.66%
Mar 31, 2020 25.16% = 0.78 × 1.00 × 32.43%
Dec 31, 2019 24.48% = 0.80 × 1.00 × 30.78%
Sep 30, 2019 23.99% = 0.80 × 0.99 × 30.06%
Jun 30, 2019 23.93% = 0.81 × 0.99 × 29.85%
Mar 31, 2019 23.38% = 0.77 × 0.99 × 30.34%
Dec 31, 2018 24.20% = 0.78 × 1.00 × 30.98%
Sep 30, 2018 — = — × — × —
Jun 30, 2018 — = — × — × —
Mar 31, 2018 — = — × — × —

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).

The primary reason for the increase in net profit margin ratio over Q3 2023 is the increase in effect of taxes measured by tax burden ratio.