Stock Analysis on Net
Stock Analysis on Net

Paycom Software Inc. (NYSE:PAYC)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Analysis of Profitability Ratios 
Quarterly Data

Microsoft Excel

Profitability ratios measure the company ability to generate profitable sales from its resources (assets).

Profitability Ratios (Summary)

Paycom Software Inc., profitability ratios (quarterly data)

Microsoft Excel
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
Return on Sales
Gross profit margin 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% — — —
Operating profit margin 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% — — —
Net profit margin 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% — — —
Return on Investment
Return on equity (ROE) 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% — — —
Return on assets (ROA) 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% — — —

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).

Gross Profit Margin
The gross profit margin remained consistently high, fluctuating slightly around the mid-80% range from March 2018 through September 2023. It started at approximately 84% in early 2018 and exhibited a mild upward trend, peaking marginally above 85.8% in mid-2020 before stabilizing near 84% towards the end of the observed period. This indicates sustained efficiency in the company’s core operations and cost management related to production or service delivery.
Operating Profit Margin
The operating profit margin displayed more volatility compared to the gross margin. Beginning around 30.7% in early 2018, it experienced a peak of approximately 32.4% in mid-2020, followed by a sharp decline to around 21.97% by early 2021. From then on, a gradual recovery occurred, rising steadily to about 28% by mid-2023. The initial decline may reflect increased operating expenses or investments, while the subsequent improvement suggests enhanced operational control or cost efficiency.
Net Profit Margin
Net profit margin showed a decline from near 24.2% in early 2018 to a low of approximately 16.65% in early 2021. Similar to the operating margin, this was followed by a rebound, climbing toward roughly 21% by mid-2023. The pattern indicates that profitability after all expenses and taxes was pressured in the earlier years but improved thereafter, reflecting either better cost management, revenue growth, or tax efficiency.
Return on Equity (ROE)
ROE started at a high level near 41% and gradually decreased to a low around 19.46% by early 2021. After that point, it showed a moderate recovery trend, rising back to approximately 23.85% by the third quarter of 2023. This downward trend followed by partial recovery may suggest changes in leverage, profitability, or equity base that impacted shareholder returns over the period.
Return on Assets (ROA)
ROA displayed a fluctuating trend, beginning near 9% in early 2018, dipping to a low of around 4.07% in mid-2021, and then ascending again to roughly 8.8% by late 2023. The significant variability could be linked to how effectively the company utilized its assets to generate profits amid changes in operational efficiency or asset base adjustments.

Return on Sales

Return on Investment

Gross Profit Margin

Paycom Software Inc., gross profit margin calculation (quarterly data)

Microsoft Excel
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% — — —

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%

The financial data reveals several notable trends in gross profit, revenues, and gross profit margin across the periods from March 2018 to September 2023.

Gross Profit
Over the analyzed quarters, gross profit shows a consistent upward trajectory with some seasonal fluctuations. Starting from approximately 130 million USD in the first quarter of 2018, gross profit rose steadily, reaching a notable peak of around 386 million USD in the first quarter of 2023. The general pattern suggests a growth trend with occasional dips, often seen in the mid-year quarters, followed by rebounds in the fourth quarter each year. This cyclical pattern is indicative of seasonal influences or business cycles impacting profitability.
Revenues
Revenues exhibit a parallel rising trend, beginning near 154 million USD in March 2018 and climbing consistently to approximately 406 million USD by September 2023. Similar to gross profit, revenues experience periodic declines in mid-year quarters but maintain robust growth over the full period. The peaks in the first and last quarters of each year reinforce the presence of seasonality in sales or billing cycles. The substantial increase in revenue over the years underscores expanding market presence or enhanced sales effectiveness.
Gross Profit Margin
The gross profit margin remains relatively stable and high throughout the periods where data is available, consistently above 83% and typically hovering in the mid-84% range. Margins peaked slightly above 85% in several quarters from 2019 to early 2021 but show a subtle downward drift toward 84% in 2023. The stability of this margin demonstrates effective cost control relative to revenue growth, suggesting that the company has maintained efficient operations despite expanding revenue and gross profit.

In summary, the data points to healthy growth in both gross profit and revenues over the period, with persistently high and stable gross profit margins. The observed seasonal patterns imply some underlying cyclical factors affecting quarterly results. The consistency in margin percentage alongside increasing absolute profit and sales values indicates the company’s capacity to scale while preserving profitability ratios.

Operating Profit Margin

Paycom Software Inc., operating profit margin calculation (quarterly data)

Microsoft Excel
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% — — —

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%

Revenue Trends
Revenues display a general upward trajectory over the observed periods, starting at approximately $153.9 million in March 2018 and reaching over $451.6 million by March 2023. Despite this growth, there are intermittent fluctuations within individual quarters, notably a decline in mid-2020 and early 2022, likely reflecting market or operational challenges during those times. The growth becomes more pronounced from late 2020 onward, indicating accelerated expansion.
Operating Income Trends
Operating income exhibits notable volatility throughout the timeline. Initial values around $51 million in early 2018 fluctuate with substantial dips, particularly striking in mid-2020 when it falls to approximately $26.6 million. From late 2020, operating income recovers and grows substantially, peaking above $160 million in March 2023. This volatility suggests sensitivity to underlying cost structures or non-recurring events, but the later growth signifies strengthening profitability.
Operating Profit Margin Trends
The operating profit margin, available from the end of 2018 onward, remains relatively stable within the 21% to 32% range. It starts near 31% in late 2018, dips to the low 20s during 2020 and early 2021, correlating with the reduced operating income, then gradually improves to the high 20% range by late 2023. This pattern implies efficient cost management and operational leverage, especially during periods of rising revenue.
Relationship between Revenues, Operating Income, and Margins
The data indicates that while revenues consistently grow, operating income does not follow a strict linear pattern, affected by fluctuations that also impact profit margins. Periods of revenue growth coincide with improved or recovering margins and operating income, particularly after mid-2020. The improvement in margins alongside rising income and revenue in the later periods suggests enhanced operational efficiency or favorable business conditions.

Net Profit Margin

Paycom Software Inc., net profit margin calculation (quarterly data)

Microsoft Excel
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% — — —

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%

The quarterly financial figures reveal a series of notable trends and fluctuations in key performance metrics over the observed periods.

Net Income
The net income exhibits considerable variability across the quarters. Initial values start at approximately 41.2 million USD in March 2018, followed by a decline through the latter half of 2018. An upward trajectory is observed in the early part of 2019, peaking near 63 million USD in March 2020. However, a subsequent decline occurs through 2020, reaching a low of approximately 24.4 million USD by December 2020.
From 2021 onward, net income recovers and displays an overall positive trend, with intermittent volatility. The figure peaks significantly in March 2022, attaining over 91.9 million USD. After fluctuating through 2022 and early 2023, the latest figures indicate a strong recovery with net income surpassing 119 million USD by March 2023, suggesting robust profitability in the most recent quarter.
Revenues
Revenues have shown a consistent upward trend throughout the periods under review. Starting at roughly 154 million USD in the first quarter of 2018, revenue demonstrates steady growth with some seasonal fluctuations. Noteworthy acceleration in revenue growth is evident from 2019 onwards, with a pronounced increase from around 242 million USD in March 2020 to approximately 451.6 million USD by March 2023.
This growth trajectory suggests expansion in business scale or market penetration, with overall revenues nearly tripling over the five-year span, underscoring strong top-line development.
Net Profit Margin
Net profit margin data begins from March 2019 and reveals a consistent range generally between 16.7% and 24.5%. The margin peaked around 25.2% in March 2020, coinciding roughly with the peak in net income during the same quarter, indicating efficient cost management relative to revenue at that point.
After a dip towards the end of 2020 to approximately 16.7%, margins recovered somewhat and fluctuated around 18%-20% through 2021 and 2022. The latest quarters show net margins stabilizing near 20%, demonstrating sustained profitability and operational efficiency despite volatility in absolute net income and revenue figures.

In summary, the financial data indicate strong revenue growth over the observed timeframe, accompanied by fluctuating but generally positive net income. Profit margins have remained relatively stable after an initial high point followed by a decline, suggesting resilience in profitability. The appreciation in net income and revenues alongside maintained margins points to effective management of growth and costs in recent periods.

Return on Equity (ROE)

Paycom Software Inc., ROE calculation (quarterly data)

Microsoft Excel
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% — — —

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%

Net Income
Net income exhibited notable fluctuations over the periods analyzed. From early 2018 through 2019, quarterly net income showed a generally positive trend, peaking at 63,015 thousand USD in March 2020 before experiencing a sharp decline during mid-2020, reaching lows around 24,367 thousand USD in December 2020. Subsequently, net income recovered and demonstrated a strong upward trajectory from 2021 onwards, with significant increases observed in March 2022 (91,930 thousand USD) and March 2023 (119,296 thousand USD). Despite some volatility between quarters, the overall long-term trend indicates growth in net profitability.
Stockholders’ Equity
Stockholders’ equity showed consistent growth throughout the entire period. Starting at approximately 333,033 thousand USD in March 2018, equity increased steadily each quarter, crossing the 1 billion USD mark in early 2022, and reaching approximately 1,421,309 thousand USD by September 2023. This sustained increase illustrates the company's successful reinvestment of earnings and retention of capital, providing a strong financial foundation for its operations and growth.
Return on Equity (ROE)
The ROE values, available from the end of 2018 onwards, reveal a declining trend from a high of approximately 40.95% in late 2018 down to a low near 19.46% in mid-2021. After this dip, ROE stabilized and exhibited a moderate upward trend, fluctuating around 22% to 24% in the latest quarters of 2022 and 2023. The initial decline could be indicative of rapid equity growth outpacing net income growth, while the subsequent stabilization suggests improved profitability efficiency relative to equity.
Overall Financial Trends
The data depicts a company with steadily expanding equity base and a net income pattern characterized by periods of volatility followed by strong recovery and growth. The ROE trend reflects the interaction between rising equity and variable net income, with initial decreases due to rapid equity increases eventually giving way to improved profitability margins. The combination of strong equity growth and recovering net income suggests enhanced financial stability and potential for sustained shareholder value creation.

Return on Assets (ROA)

Paycom Software Inc., ROA calculation (quarterly data)

Microsoft Excel
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% — — —

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%

Net Income
The net income exhibits significant fluctuations over the analyzed periods. Initially, from early 2018 through the end of 2018, net income grew modestly, reaching a high point of approximately $45 million in the last quarter of 2018. In 2019, net income shows variability, peaking in the second quarter at around $48.7 million, then declining in subsequent quarters before again rising towards the end of the year. The year 2020 reveals a sharp decline, notably in the second, third, and fourth quarters, where net income dropped to levels near $24-28 million, indicating potential challenges or increased costs during this period. In 2021, net income recovered somewhat, with a strong first quarter around $64.6 million, then a decline through the middle of the year, followed by an increase in the last quarter. The first quarter of 2022 shows a substantial increase to approximately $91.9 million, the highest quarterly figure in the data set, before experiencing variability but maintaining relatively high values through 2023, with the first quarter of 2023 hitting a new peak near $119.3 million.
Total Assets
Total assets show a general upward trend over the full period, indicating growth in the company’s resource base. Early 2018 to the end of 2018 saw total assets ranging between about $1.41 billion and $2.49 billion, with notable growth particularly in the last quarter. During 2019, total assets peaked around $2.48 billion in the last quarter but then showed some fluctuation into 2020, including a dip around mid-2020 before recovering again towards the year-end. From 2020 into 2021, there was a significant increase, especially in the first three quarters of 2021, where assets crossed $4 billion, reaching approximately $4.22 billion in the third quarter. In 2022, total assets peaked near $5.44 billion in March before declining yet remaining above $3.3 billion through the rest of the year. Throughout 2023, total assets stabilized in the range of $3.85 to $4.24 billion, suggesting a plateau after rapid growth in prior years.
Return on Assets (ROA)
Return on assets was first reported starting in March 2019 and demonstrates a fluctuating but generally positive trend over the subsequent quarters. The ROA began at approximately 9% in early 2019, declined to around 4% by mid-2021, reflecting reduced profitability relative to assets during this interval. Post mid-2021, ROA shows modest recovery and volatility, fluctuating between about 4% and 8.8%, with the most recent quarters indicating improvement, including a peak near 8.8% in late 2023. This pattern suggests that while asset growth has been substantial, efficiency in generating returns from those assets has varied, with periods of lower profitability followed by a rebound.
Overall Analysis
The financial data suggests that the company has experienced significant asset expansion, particularly between 2020 and 2022, potentially through investments or acquisitions. Net income trends reflect periods of both contraction and robust growth, with notable dips during 2020 but strong recovery thereafter, reaching record highs in early 2023. The ROA indicates fluctuations in operational efficiency or profitability relative to the asset base, perhaps affected by varying market conditions or strategic initiatives. The combination of rising total assets and increasing net income in recent periods points to improved financial performance, although the past volatility highlights the need for continued monitoring of profitability metrics relative to asset growth.