Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Paycom Software Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Paycom Software Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Paycom Software Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Paycom Software Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Paycom Software Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Paycom Software Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Paycom Software Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Paycom Software Inc. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Paycom Software Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity
Paycom Software Inc., debt to equity 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 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 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 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Cintas Corp. | 0.85 | 0.69 | 0.79 | 0.95 | — | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.41 | 1.36 | 1.80 | — | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Paycom Software Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Paycom Software Inc., debt to equity (including operating lease liability) 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 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 debt | 29,000) | 29,155) | 30,894) | 32,633) | 34,389) | |
| Operating lease liabilities (included in Accrued expenses and other current liabilities) | 14,986) | 10,853) | 10,906) | 10,265) | —) | |
| Operating lease liabilities (included in Other long-term liabilities) | 26,026) | 20,059) | 16,990) | 18,420) | —) | |
| Total debt (including operating lease liability) | 70,012) | 60,067) | 58,790) | 61,318) | 34,389) | |
| Stockholders’ equity | 1,182,607) | 893,714) | 655,643) | 526,628) | 334,753) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.06 | 0.07 | 0.09 | 0.12 | 0.10 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Cintas Corp. | 0.90 | 0.74 | 0.84 | 0.95 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.58 | 1.52 | 1.98 | — | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 70,012 ÷ 1,182,607 = 0.06
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Paycom Software Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
Paycom Software Inc., debt to capital 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 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 debt | 29,000) | 29,155) | 30,894) | 32,633) | 34,389) | |
| Stockholders’ equity | 1,182,607) | 893,714) | 655,643) | 526,628) | 334,753) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Cintas Corp. | 0.46 | 0.41 | 0.44 | 0.49 | — | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.59 | 0.58 | 0.64 | — | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Paycom Software Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Paycom Software Inc., debt to capital (including operating lease liability) 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 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 debt | 29,000) | 29,155) | 30,894) | 32,633) | 34,389) | |
| Operating lease liabilities (included in Accrued expenses and other current liabilities) | 14,986) | 10,853) | 10,906) | 10,265) | —) | |
| Operating lease liabilities (included in Other long-term liabilities) | 26,026) | 20,059) | 16,990) | 18,420) | —) | |
| Total debt (including operating lease liability) | 70,012) | 60,067) | 58,790) | 61,318) | 34,389) | |
| Stockholders’ equity | 1,182,607) | 893,714) | 655,643) | 526,628) | 334,753) | |
| Total capital (including operating lease liability) | 1,252,619) | 953,781) | 714,433) | 587,946) | 369,142) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.06 | 0.06 | 0.08 | 0.10 | 0.09 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Cintas Corp. | 0.47 | 0.42 | 0.46 | 0.49 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.61 | 0.60 | 0.66 | — | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 70,012 ÷ 1,252,619 = 0.06
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Paycom Software Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Paycom Software Inc., debt to assets 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 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 debt | 29,000) | 29,155) | 30,894) | 32,633) | 34,389) | |
| Total assets | 3,902,513) | 3,215,145) | 2,607,912) | 2,486,917) | 1,521,926) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Cintas Corp. | 0.34 | 0.31 | 0.33 | 0.38 | — | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.31 | 0.30 | 0.33 | — | — | |
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 assets = Total debt ÷ Total assets
= 29,000 ÷ 3,902,513 = 0.01
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Paycom Software Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Paycom Software Inc., debt to assets (including operating lease liability) 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 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 debt | 29,000) | 29,155) | 30,894) | 32,633) | 34,389) | |
| Operating lease liabilities (included in Accrued expenses and other current liabilities) | 14,986) | 10,853) | 10,906) | 10,265) | —) | |
| Operating lease liabilities (included in Other long-term liabilities) | 26,026) | 20,059) | 16,990) | 18,420) | —) | |
| Total debt (including operating lease liability) | 70,012) | 60,067) | 58,790) | 61,318) | 34,389) | |
| Total assets | 3,902,513) | 3,215,145) | 2,607,912) | 2,486,917) | 1,521,926) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Cintas Corp. | 0.36 | 0.33 | 0.35 | 0.38 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.34 | 0.34 | 0.36 | — | — | |
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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 70,012 ÷ 3,902,513 = 0.02
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Paycom Software Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
Paycom Software Inc., financial leverage 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) | ||||||
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Cintas Corp. | 2.46 | 2.23 | 2.37 | 2.48 | — | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.62 | 4.49 | 5.44 | — | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Paycom Software Inc. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Paycom Software Inc., interest coverage 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) | ||||||
| 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) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 154.62 | — | 9,787.11 | 241.52 | 229.08 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Cintas Corp. | 17.87 | 14.11 | 11.04 | 11.84 | — | |
| Interest Coverage, Industry | ||||||
| Industrials | 5.07 | 5.21 | 1.33 | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 392,114 ÷ 2,536 = 154.62
2 Click competitor name to see calculations.
Fixed Charge Coverage
Paycom Software Inc., fixed charge coverage 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) | ||||||
| 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) | |
| Add: Rent expense under operating leases | 12,300) | 11,900) | 11,300) | 10,100) | 7,600) | |
| Earnings before fixed charges and tax | 404,414) | 267,862) | 197,255) | 237,127) | 183,077) | |
| Interest expense | 2,536) | —) | 19) | 940) | 766) | |
| Rent expense under operating leases | 12,300) | 11,900) | 11,300) | 10,100) | 7,600) | |
| Fixed charges | 14,836) | 11,900) | 11,319) | 11,040) | 8,366) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 27.26 | 22.51 | 17.43 | 21.48 | 21.88 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Cintas Corp. | 10.18 | 8.61 | 7.02 | 7.43 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 3.35 | 3.49 | 1.17 | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 404,414 ÷ 14,836 = 27.26
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Paycom Software Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |