Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Paycom Software Inc., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.16 | 1.13 | 1.09 | 1.07 | 1.03 | |
| Quick ratio | 0.18 | 0.14 | 0.09 | 0.08 | 0.05 | |
| Cash ratio | 0.17 | 0.14 | 0.09 | 0.08 | 0.04 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Paycom Software Inc. current ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Paycom Software Inc. quick ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Paycom Software Inc. cash ratio improved from 2020 to 2021 and from 2021 to 2022. |
Current Ratio
Paycom Software Inc., current ratio 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) | |
| 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 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Cintas Corp. | 1.84 | 1.47 | 2.61 | 1.98 | — | |
| Current Ratio, Industry | ||||||
| Industrials | 1.20 | 1.29 | 1.41 | — | — | |
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 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Paycom Software Inc. current ratio improved from 2020 to 2021 and from 2021 to 2022. |
Quick Ratio
Paycom Software Inc., quick ratio 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) | ||||||
| Cash and cash equivalents | 400,730) | 277,978) | 151,710) | 133,667) | 45,718) | |
| Accounts receivable | 22,843) | 9,490) | 9,130) | 9,298) | 3,414) | |
| Total quick assets | 423,573) | 287,468) | 160,840) | 142,965) | 49,132) | |
| Current liabilities | 2,377,037) | 1,990,410) | 1,718,030) | 1,753,522) | 1,028,682) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.18 | 0.14 | 0.09 | 0.08 | 0.05 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Cintas Corp. | 0.77 | 0.72 | 1.15 | 0.89 | — | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.72 | 0.80 | 0.88 | — | — | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 423,573 ÷ 2,377,037 = 0.18
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Paycom Software Inc. quick ratio improved from 2020 to 2021 and from 2021 to 2022. |
Cash Ratio
Paycom Software Inc., cash ratio 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) | ||||||
| Cash and cash equivalents | 400,730) | 277,978) | 151,710) | 133,667) | 45,718) | |
| Total cash assets | 400,730) | 277,978) | 151,710) | 133,667) | 45,718) | |
| Current liabilities | 2,377,037) | 1,990,410) | 1,718,030) | 1,753,522) | 1,028,682) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.17 | 0.14 | 0.09 | 0.08 | 0.04 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Cintas Corp. | 0.06 | 0.26 | 0.16 | 0.09 | — | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.32 | 0.39 | 0.47 | — | — | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 400,730 ÷ 2,377,037 = 0.17
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Paycom Software Inc. cash ratio improved from 2020 to 2021 and from 2021 to 2022. |