Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Paycom Software Inc., profitability ratios (quarterly data)
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Paycom Software Inc. gross profit margin ratio deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Paycom Software Inc. operating profit margin ratio deteriorated from Q1 2023 to Q2 2023 but then slightly improved from Q2 2023 to Q3 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Paycom Software Inc. net profit margin ratio deteriorated from Q1 2023 to Q2 2023 but then improved from Q2 2023 to Q3 2023 not reaching Q1 2023 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Paycom Software Inc. ROE deteriorated from Q1 2023 to Q2 2023 but then improved from Q2 2023 to Q3 2023 exceeding Q1 2023 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Paycom Software Inc. ROA improved from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023. |
Gross Profit Margin
Paycom Software Inc., gross profit margin 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) | ||||||||||||||||||||||||||||||
| Gross profit | 337,362) | 333,711) | 386,405) | 311,537) | 279,063) | 266,842) | 305,035) | 238,463) | 213,514) | 205,736) | 235,925) | 187,917) | 165,620) | 152,029) | 212,322) | 164,611) | 148,614) | 144,074) | 170,625) | 126,230) | 111,163) | 107,869) | 130,311) | |||||||
| Revenues | 406,303) | 401,139) | 451,637) | 370,608) | 334,167) | 316,924) | 353,519) | 284,986) | 256,194) | 242,146) | 272,198) | 220,947) | 196,532) | 181,587) | 242,368) | 193,409) | 175,006) | 169,313) | 199,943) | 150,332) | 133,288) | 128,800) | 153,916) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | 84.00% | 84.15% | 84.42% | 84.53% | 84.48% | 84.50% | 84.69% | 84.66% | 85.03% | 85.34% | 85.11% | 85.32% | 85.34% | 85.51% | 85.84% | 85.12% | 84.88% | 84.56% | 84.25% | 83.97% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Cintas Corp. | 46.84% | 46.50% | 46.25% | 46.24% | 46.55% | 46.51% | 46.67% | 46.58% | 45.84% | 45.84% | 45.73% | 45.64% | 46.14% | 46.00% | 45.72% | 45.39% | — | — | — | — | — | — | — | |||||||
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).
1 Q3 2023 Calculation
Gross profit margin = 100
× (Gross profitQ3 2023
+ Gross profitQ2 2023
+ Gross profitQ1 2023
+ Gross profitQ4 2022)
÷ (RevenuesQ3 2023
+ RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022)
= 100 × (337,362 + 333,711 + 386,405 + 311,537)
÷ (406,303 + 401,139 + 451,637 + 370,608)
= 84.00%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Paycom Software Inc. gross profit margin ratio deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023. |
Operating Profit Margin
Paycom Software Inc., operating profit margin 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) | ||||||||||||||||||||||||||||||
| Operating income | 96,901) | 87,266) | 160,432) | 105,834) | 74,265) | 72,313) | 126,267) | 68,626) | 43,305) | 47,090) | 94,546) | 36,247) | 34,036) | 26,576) | 89,264) | 60,294) | 50,556) | 52,886) | 62,488) | 43,413) | 36,245) | 43,037) | 51,020) | |||||||
| Revenues | 406,303) | 401,139) | 451,637) | 370,608) | 334,167) | 316,924) | 353,519) | 284,986) | 256,194) | 242,146) | 272,198) | 220,947) | 196,532) | 181,587) | 242,368) | 193,409) | 175,006) | 169,313) | 199,943) | 150,332) | 133,288) | 128,800) | 153,916) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | 27.64% | 27.47% | 28.02% | 27.54% | 26.48% | 25.63% | 25.09% | 24.02% | 22.31% | 22.74% | 21.97% | 22.12% | 25.82% | 28.61% | 32.43% | 30.67% | 30.14% | 29.87% | 30.24% | 30.67% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Cintas Corp. | 20.18% | 20.26% | 20.11% | 20.21% | 20.21% | 19.62% | 19.68% | 19.47% | 17.92% | 17.66% | 17.18% | 16.41% | 17.49% | 17.29% | 16.76% | 16.45% | — | — | — | — | — | — | — | |||||||
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).
1 Q3 2023 Calculation
Operating profit margin = 100
× (Operating incomeQ3 2023
+ Operating incomeQ2 2023
+ Operating incomeQ1 2023
+ Operating incomeQ4 2022)
÷ (RevenuesQ3 2023
+ RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022)
= 100 × (96,901 + 87,266 + 160,432 + 105,834)
÷ (406,303 + 401,139 + 451,637 + 370,608)
= 27.64%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Paycom Software Inc. operating profit margin ratio deteriorated from Q1 2023 to Q2 2023 but then slightly improved from Q2 2023 to Q3 2023. |
Net Profit Margin
Paycom Software Inc., net profit margin 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) | |||||||
| Revenues | 406,303) | 401,139) | 451,637) | 370,608) | 334,167) | 316,924) | 353,519) | 284,986) | 256,194) | 242,146) | 272,198) | 220,947) | 196,532) | 181,587) | 242,368) | 193,409) | 175,006) | 169,313) | 199,943) | 150,332) | 133,288) | 128,800) | 153,916) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | 20.80% | 20.28% | 20.96% | 20.46% | 19.40% | 18.85% | 19.64% | 18.57% | 17.31% | 18.11% | 16.65% | 17.05% | 20.21% | 22.23% | 25.16% | 24.48% | 23.99% | 23.93% | 23.38% | 24.20% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Cintas Corp. | 15.06% | 15.35% | 15.46% | 15.73% | 15.88% | 15.50% | 15.72% | 15.61% | 14.32% | 13.90% | 13.18% | 12.36% | 13.19% | 12.99% | 13.18% | 12.84% | — | — | — | — | — | — | — | |||||||
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).
1 Q3 2023 Calculation
Net profit margin = 100
× (Net incomeQ3 2023
+ Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022)
÷ (RevenuesQ3 2023
+ RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022)
= 100 × (75,219 + 64,516 + 119,296 + 79,951)
÷ (406,303 + 401,139 + 451,637 + 370,608)
= 20.80%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Paycom Software Inc. net profit margin ratio deteriorated from Q1 2023 to Q2 2023 but then improved from Q2 2023 to Q3 2023 not reaching Q1 2023 level. |
Return on Equity (ROE)
Paycom Software Inc., ROE 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) | |||||||
| 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) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | 23.85% | 22.46% | 23.14% | 23.79% | 23.24% | 22.97% | 22.13% | 21.93% | 20.80% | 21.30% | 19.46% | 21.88% | 26.01% | 30.06% | 32.73% | 34.29% | 35.08% | 35.93% | 35.93% | 40.95% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Cintas Corp. | 35.68% | 37.48% | 38.90% | 37.35% | 36.70% | 32.33% | 34.51% | 30.13% | 25.88% | 26.79% | 25.67% | 27.08% | 28.81% | 29.84% | 30.26% | 29.47% | — | — | — | — | — | — | — | |||||||
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).
1 Q3 2023 Calculation
ROE = 100
× (Net incomeQ3 2023
+ Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022)
÷ Stockholders’ equity
= 100 × (75,219 + 64,516 + 119,296 + 79,951)
÷ 1,421,309 = 23.85%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Paycom Software Inc. ROE deteriorated from Q1 2023 to Q2 2023 but then improved from Q2 2023 to Q3 2023 exceeding Q1 2023 level. |
Return on Assets (ROA)
Paycom Software Inc., ROA 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) | |||||||
| 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) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | 8.79% | 8.00% | 7.28% | 7.21% | 7.55% | 4.67% | 4.10% | 6.09% | 4.07% | 5.22% | 4.26% | 5.50% | 6.62% | 9.17% | 8.50% | 7.26% | 10.47% | 8.55% | 6.94% | 9.01% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Cintas Corp. | 15.31% | 15.26% | 15.21% | 15.17% | 14.80% | 14.37% | 14.54% | 13.49% | 11.83% | 11.40% | 11.50% | 11.42% | 12.12% | 11.75% | 12.05% | 11.90% | — | — | — | — | — | — | — | |||||||
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).
1 Q3 2023 Calculation
ROA = 100
× (Net incomeQ3 2023
+ Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022)
÷ Total assets
= 100 × (75,219 + 64,516 + 119,296 + 79,951)
÷ 3,856,101 = 8.79%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Paycom Software Inc. ROA improved from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023. |