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 Capital
Debt to Assets
Financial Leverage
Interest Coverage

Paycom Software Inc., solvency ratios (quarterly data)

	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Debt Ratios
Debt to equity	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.04	0.04	0.04	0.05	0.05	0.05	0.05	0.06	0.07	0.08	0.09	0.10	0.10	0.11	0.11
Debt to capital	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.03	0.04	0.04	0.04	0.05	0.05	0.05	0.06	0.07	0.07	0.08	0.09	0.09	0.10	0.10
Debt to assets	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.02	0.01	0.01	0.02	0.02	0.02	0.02	0.02	0.02	0.02
Financial leverage	2.71	2.81	3.18	3.30	3.08	4.92	5.40	3.60	5.11	4.08	4.57	3.98	3.93	3.28	3.85	4.72	3.35	4.20	5.18	4.55	4.07	4.30	4.83
Coverage Ratios
Interest coverage	182.79	132.45	136.44	154.62	218.76	552.59	1,341.70	—	—	—	64,265.33	9,787.11	1,276.48	534.32	372.02	241.52	182.85	153.94	178.33	229.08	—	—	—

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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 Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
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 Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Paycom Software Inc. debt to assets ratio deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Paycom Software Inc. financial leverage ratio decreased from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

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Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Paycom Software Inc. interest coverage ratio deteriorated from Q1 2023 to Q2 2023 but then improved from Q2 2023 to Q3 2023 exceeding Q1 2023 level.

Paycom Software Inc., debt to equity calculation (quarterly data)

	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Selected Financial Data (US$ in thousands)
Current portion of long-term debt	—)	—)	—)	—)	—)	—)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,331)
Long-term debt, less current portion	29,000)	29,000)	29,000)	29,000)	29,000)	29,000)	26,945)	27,380)	27,815)	28,250)	28,684)	29,119)	29,554)	29,989)	30,423)	30,858)	31,293)	31,727)	32,179)	32,614)	33,049)	33,486)	33,935)
Total debt	29,000)	29,000)	29,000)	29,000)	29,000)	29,000)	28,720)	29,155)	29,590)	30,025)	30,459)	30,894)	31,329)	31,764)	32,198)	32,633)	33,068)	33,502)	33,954)	34,389)	34,824)	35,261)	35,266)

Stockholders’ equity	1,421,309)	1,406,685)	1,334,471)	1,182,607)	1,076,380)	994,139)	1,009,020)	893,714)	825,341)	792,256)	745,476)	655,643)	632,399)	585,853)	599,788)	526,628)	474,898)	434,762)	398,553)	334,753)	360,377)	329,738)	333,033)
Solvency Ratio
Debt to equity¹	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.04	0.04	0.04	0.05	0.05	0.05	0.05	0.06	0.07	0.08	0.09	0.10	0.10	0.11	0.11

¹ Q3 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 29,000 ÷ 1,421,309 = 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 Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Paycom Software Inc., debt to capital calculation (quarterly data)

	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Selected Financial Data (US$ in thousands)
Current portion of long-term debt	—)	—)	—)	—)	—)	—)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,331)
Long-term debt, less current portion	29,000)	29,000)	29,000)	29,000)	29,000)	29,000)	26,945)	27,380)	27,815)	28,250)	28,684)	29,119)	29,554)	29,989)	30,423)	30,858)	31,293)	31,727)	32,179)	32,614)	33,049)	33,486)	33,935)
Total debt	29,000)	29,000)	29,000)	29,000)	29,000)	29,000)	28,720)	29,155)	29,590)	30,025)	30,459)	30,894)	31,329)	31,764)	32,198)	32,633)	33,068)	33,502)	33,954)	34,389)	34,824)	35,261)	35,266)
Stockholders’ equity	1,421,309)	1,406,685)	1,334,471)	1,182,607)	1,076,380)	994,139)	1,009,020)	893,714)	825,341)	792,256)	745,476)	655,643)	632,399)	585,853)	599,788)	526,628)	474,898)	434,762)	398,553)	334,753)	360,377)	329,738)	333,033)
Total capital	1,450,309)	1,435,685)	1,363,471)	1,211,607)	1,105,380)	1,023,139)	1,037,740)	922,869)	854,931)	822,281)	775,935)	686,537)	663,728)	617,617)	631,986)	559,261)	507,966)	468,264)	432,507)	369,142)	395,201)	364,999)	368,299)
Solvency Ratio
Debt to capital¹	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.03	0.04	0.04	0.04	0.05	0.05	0.05	0.06	0.07	0.07	0.08	0.09	0.09	0.10	0.10

¹ Q3 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 29,000 ÷ 1,450,309 = 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 Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Paycom Software Inc., debt to assets calculation (quarterly data)

	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Selected Financial Data (US$ in thousands)
Current portion of long-term debt	—)	—)	—)	—)	—)	—)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,775)	1,331)
Long-term debt, less current portion	29,000)	29,000)	29,000)	29,000)	29,000)	29,000)	26,945)	27,380)	27,815)	28,250)	28,684)	29,119)	29,554)	29,989)	30,423)	30,858)	31,293)	31,727)	32,179)	32,614)	33,049)	33,486)	33,935)
Total debt	29,000)	29,000)	29,000)	29,000)	29,000)	29,000)	28,720)	29,155)	29,590)	30,025)	30,459)	30,894)	31,329)	31,764)	32,198)	32,633)	33,068)	33,502)	33,954)	34,389)	34,824)	35,261)	35,266)

Total assets	3,856,101)	3,951,341)	4,241,622)	3,902,513)	3,314,570)	4,891,703)	5,444,574)	3,215,145)	4,218,038)	3,233,087)	3,406,773)	2,607,912)	2,485,199)	1,921,500)	2,309,725)	2,486,917)	1,592,027)	1,826,192)	2,062,828)	1,521,926)	1,468,186)	1,418,965)	1,608,130)
Solvency Ratio
Debt to assets¹	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.02	0.01	0.01	0.02	0.02	0.02	0.02	0.02	0.02	0.02

¹ Q3 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 29,000 ÷ 3,856,101 = 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 deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Paycom Software Inc., financial leverage calculation (quarterly data)

	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Selected Financial Data (US$ in thousands)
Total assets	3,856,101)	3,951,341)	4,241,622)	3,902,513)	3,314,570)	4,891,703)	5,444,574)	3,215,145)	4,218,038)	3,233,087)	3,406,773)	2,607,912)	2,485,199)	1,921,500)	2,309,725)	2,486,917)	1,592,027)	1,826,192)	2,062,828)	1,521,926)	1,468,186)	1,418,965)	1,608,130)
Stockholders’ equity	1,421,309)	1,406,685)	1,334,471)	1,182,607)	1,076,380)	994,139)	1,009,020)	893,714)	825,341)	792,256)	745,476)	655,643)	632,399)	585,853)	599,788)	526,628)	474,898)	434,762)	398,553)	334,753)	360,377)	329,738)	333,033)
Solvency Ratio
Financial leverage¹	2.71	2.81	3.18	3.30	3.08	4.92	5.40	3.60	5.11	4.08	4.57	3.98	3.93	3.28	3.85	4.72	3.35	4.20	5.18	4.55	4.07	4.30	4.83

¹ Q3 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 3,856,101 ÷ 1,421,309 = 2.71

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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 Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Paycom Software Inc., interest coverage calculation (quarterly data)

	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Selected Financial Data (US$ in thousands)
Net income	75,219)	64,516)	119,296)	79,951)	52,153)	57,355)	91,930)	48,687)	30,379)	52,278)	64,616)	24,367)	27,482)	28,589)	63,015)	45,380)	39,152)	48,762)	47,282)	31,414)	28,769)	35,722)	41,160)
Add: Income tax expense	26,822)	28,331)	46,303)	34,038)	23,135)	15,482)	35,534)	21,315)	13,170)	(5,042)	30,559)	12,234)	6,800)	(1,854)	25,303)	15,739)	11,339)	3,603)	14,830)	11,285)	7,675)	7,796)	10,890)
Add: Interest expense	222)	602)	837)	949)	1,018)	354)	215)	—)	—)	—)	—)	—)	—)	3)	16)	146)	260)	258)	276)	348)	384)	34)	—)
Earnings before interest and tax (EBIT)	102,263)	93,449)	166,436)	114,938)	76,306)	73,191)	127,679)	70,002)	43,549)	47,236)	95,175)	36,601)	34,282)	26,738)	88,334)	61,265)	50,751)	52,623)	62,388)	43,047)	36,828)	43,552)	52,050)
Solvency Ratio
Interest coverage¹	182.79	132.45	136.44	154.62	218.76	552.59	1,341.70	—	—	—	64,265.33	9,787.11	1,276.48	534.32	372.02	241.52	182.85	153.94	178.33	229.08	—	—	—

¹ Q3 2023 Calculation
Interest coverage = (EBIT_{Q3 2023} + EBIT_{Q2 2023} + EBIT_{Q1 2023} + EBIT_{Q4 2022}) ÷ (Interest expense_{Q3 2023} + Interest expense_{Q2 2023} + Interest expense_{Q1 2023} + Interest expense_{Q4 2022})
= (102,263 + 93,449 + 166,436 + 114,938) ÷ (222 + 602 + 837 + 949) = 182.79

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Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Paycom Software Inc. interest coverage ratio deteriorated from Q1 2023 to Q2 2023 but then improved from Q2 2023 to Q3 2023 exceeding Q1 2023 level.

Paycom Software Inc. (NYSE:PAYC)

Analysis of Solvency Ratios
Quarterly Data

Solvency Ratios (Summary)

Debt to Equity

Debt to Capital

Debt to Assets

Financial Leverage

Interest Coverage

Paycom Software Inc. (NYSE:PAYC)

Analysis of Solvency Ratios Quarterly Data

Solvency Ratios (Summary)

Debt to Equity

Debt to Capital

Debt to Assets

Financial Leverage

Interest Coverage

Analysis of Solvency Ratios
Quarterly Data