Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Paycom Software Inc., solvency ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Debt Ratios
Debt to equity	0.02	0.03	0.05	0.06	0.10
Debt to equity (including operating lease liability)	0.06	0.07	0.09	0.12	0.10
Debt to capital	0.02	0.03	0.04	0.06	0.09
Debt to capital (including operating lease liability)	0.06	0.06	0.08	0.10	0.09
Debt to assets	0.01	0.01	0.01	0.01	0.02
Debt to assets (including operating lease liability)	0.02	0.02	0.02	0.02	0.02
Financial leverage	3.30	3.60	3.98	4.72	4.55
Coverage Ratios
Interest coverage	154.62	—	9,787.11	241.52	229.08
Fixed charge coverage	27.26	22.51	17.43	21.48	21.88

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).

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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.

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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.

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, Industry
Industrials	1.32	1.25	1.73	1.86	—

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

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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.

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), Industry
Industrials	1.47	1.39	1.89	1.96	—

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

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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.

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, Industry
Industrials	0.57	0.56	0.63	0.65	—

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

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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.

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), Industry
Industrials	0.60	0.58	0.65	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

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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.

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, Industry
Industrials	0.29	0.29	0.32	0.32	—

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

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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.

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), Industry
Industrials	0.33	0.32	0.35	0.34	—

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

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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.

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, Industry
Industrials	4.49	4.33	5.35	5.76	—

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

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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.

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, Industry
Industrials	5.53	6.00	2.04	4.37	—

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
Interest coverage = EBIT ÷ Interest expense
= 392,114 ÷ 2,536 = 154.62

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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, Industry
Industrials	3.58	3.93	1.59	2.96	—

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

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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.

Paycom Software Inc. (NYSE:PAYC)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage