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 Short-term (Operating) Activity Ratios
Quarterly Data

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)

Paycom Software Inc., short-term (operating) activity 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
Turnover Ratios
Inventory turnover 311.81 282.42 258.72 132.38 136.09 114.01 237.84 143.14 171.35 154.90 119.28 107.34 129.13 83.43 118.79 94.77 150.07 131.40 106.02 113.88 — — —
Receivables turnover 104.82 96.19 82.76 60.20 86.57 60.35 63.35 111.22 76.24 46.81 44.02 92.16 65.88 85.25 96.80 79.34 266.23 229.08 159.68 165.89 — — —
Payables turnover 37.84 29.09 22.87 13.25 19.61 13.93 14.28 28.05 15.72 14.82 10.70 18.20 12.92 31.30 19.40 21.73 22.38 27.83 23.64 14.43 — — —
Working capital turnover 3.31 2.99 3.01 3.55 3.90 4.33 3.53 4.03 4.37 4.41 4.39 5.74 5.41 6.45 5.08 6.27 7.35 7.53 9.31 15.76 — — —
Average No. Days
Average inventory processing period 1 1 1 3 3 3 2 3 2 2 3 3 3 4 3 4 2 3 3 3 — — —
Add: Average receivable collection period 3 4 4 6 4 6 6 3 5 8 8 4 6 4 4 5 1 2 2 2 — — —
Operating cycle 4 5 5 9 7 9 8 6 7 10 11 7 9 8 7 9 3 5 5 5 — — —
Less: Average payables payment period 10 13 16 28 19 26 26 13 23 25 34 20 28 12 19 17 16 13 15 25 — — —
Cash conversion cycle -6 -8 -11 -19 -12 -17 -18 -7 -16 -15 -23 -13 -19 -4 -12 -8 -13 -8 -10 -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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Paycom Software Inc. inventory turnover ratio improved from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. Paycom Software Inc. receivables turnover ratio improved from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Paycom Software Inc. payables turnover ratio increased from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Paycom Software Inc. working capital turnover ratio deteriorated from Q1 2023 to Q2 2023 but then improved from Q2 2023 to Q3 2023 exceeding Q1 2023 level.
Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Paycom Software Inc. number of days of payables outstanding decreased from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Paycom Software Inc. cash conversion cycle deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Inventory Turnover

Paycom Software Inc., inventory turnover 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)
Cost of revenues 68,941 67,428 65,232 59,071 55,104 50,082 48,484 46,523 42,680 36,410 36,273 33,030 30,912 29,558 30,046 28,798 26,392 25,239 29,318 24,102 22,125 20,931 23,605
Inventory 836 874 887 1,607 1,471 1,647 732 1,131 866 882 1,088 1,151 924 1,376 930 1,158 700 767 910 797 574 477 420
Short-term Activity Ratio
Inventory turnover1 311.81 282.42 258.72 132.38 136.09 114.01 237.84 143.14 171.35 154.90 119.28 107.34 129.13 83.43 118.79 94.77 150.07 131.40 106.02 113.88 — — —

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
Inventory turnover = (Cost of revenuesQ3 2023 + Cost of revenuesQ2 2023 + Cost of revenuesQ1 2023 + Cost of revenuesQ4 2022) ÷ Inventory
= (68,941 + 67,428 + 65,232 + 59,071) ÷ 836 = 311.81

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Paycom Software Inc. inventory turnover ratio improved from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Receivables Turnover

Paycom Software Inc., receivables turnover 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)
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
Accounts receivable 15,548 16,193 17,802 22,843 14,896 20,078 17,945 9,490 13,004 19,905 19,792 9,130 12,355 9,295 8,059 9,298 2,609 2,850 3,835 3,414 2,213 2,414 2,350
Short-term Activity Ratio
Receivables turnover1 104.82 96.19 82.76 60.20 86.57 60.35 63.35 111.22 76.24 46.81 44.02 92.16 65.88 85.25 96.80 79.34 266.23 229.08 159.68 165.89 — — —

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
Receivables turnover = (RevenuesQ3 2023 + RevenuesQ2 2023 + RevenuesQ1 2023 + RevenuesQ4 2022) ÷ Accounts receivable
= (406,303 + 401,139 + 451,637 + 370,608) ÷ 15,548 = 104.82

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Paycom Software Inc. receivables turnover ratio improved from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Payables Turnover

Paycom Software Inc., payables turnover 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)
Cost of revenues 68,941 67,428 65,232 59,071 55,104 50,082 48,484 46,523 42,680 36,410 36,273 33,030 30,912 29,558 30,046 28,798 26,392 25,239 29,318 24,102 22,125 20,931 23,605
Accounts payable 6,889 8,485 10,036 16,054 10,211 13,475 12,192 5,772 9,441 9,220 12,133 6,787 9,237 3,667 5,694 5,051 4,693 3,622 4,081 6,288 6,173 4,995 3,421
Short-term Activity Ratio
Payables turnover1 37.84 29.09 22.87 13.25 19.61 13.93 14.28 28.05 15.72 14.82 10.70 18.20 12.92 31.30 19.40 21.73 22.38 27.83 23.64 14.43 — — —

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
Payables turnover = (Cost of revenuesQ3 2023 + Cost of revenuesQ2 2023 + Cost of revenuesQ1 2023 + Cost of revenuesQ4 2022) ÷ Accounts payable
= (68,941 + 67,428 + 65,232 + 59,071) ÷ 6,889 = 37.84

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Paycom Software Inc. payables turnover ratio increased from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Working Capital Turnover

Paycom Software Inc., working capital turnover 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)
Current assets 2,562,966 2,708,194 3,054,691 2,764,172 2,228,362 3,847,992 4,434,296 2,252,038 3,313,182 2,356,522 2,624,207 1,864,605 1,778,316 1,240,058 1,651,561 1,871,100 1,012,975 1,287,986 1,549,484 1,064,622 1,037,534 1,002,032 1,205,019
Less: Current liabilities 2,069,910 2,186,727 2,565,098 2,377,037 1,897,755 3,568,472 4,112,531 1,990,410 3,086,273 2,145,208 2,425,574 1,718,030 1,627,801 1,117,251 1,497,915 1,753,522 918,478 1,201,278 1,483,710 1,028,682 958,149 947,056 1,141,342
Working capital 493,056 521,467 489,593 387,135 330,607 279,520 321,765 261,628 226,909 211,314 198,633 146,575 150,515 122,807 153,646 117,578 94,497 86,708 65,774 35,940 79,385 54,976 63,677
 
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
Short-term Activity Ratio
Working capital turnover1 3.31 2.99 3.01 3.55 3.90 4.33 3.53 4.03 4.37 4.41 4.39 5.74 5.41 6.45 5.08 6.27 7.35 7.53 9.31 15.76 — — —

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
Working capital turnover = (RevenuesQ3 2023 + RevenuesQ2 2023 + RevenuesQ1 2023 + RevenuesQ4 2022) ÷ Working capital
= (406,303 + 401,139 + 451,637 + 370,608) ÷ 493,056 = 3.31

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Paycom Software Inc. working capital turnover ratio deteriorated from Q1 2023 to Q2 2023 but then improved from Q2 2023 to Q3 2023 exceeding Q1 2023 level.

Average Inventory Processing Period

Paycom Software Inc., average inventory processing period 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
Inventory turnover 311.81 282.42 258.72 132.38 136.09 114.01 237.84 143.14 171.35 154.90 119.28 107.34 129.13 83.43 118.79 94.77 150.07 131.40 106.02 113.88 — — —
Short-term Activity Ratio (no. days)
Average inventory processing period1 1 1 1 3 3 3 2 3 2 2 3 3 3 4 3 4 2 3 3 3 — — —

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 311.81 = 1

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

Paycom Software Inc., average receivable collection period 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
Receivables turnover 104.82 96.19 82.76 60.20 86.57 60.35 63.35 111.22 76.24 46.81 44.02 92.16 65.88 85.25 96.80 79.34 266.23 229.08 159.68 165.89 — — —
Short-term Activity Ratio (no. days)
Average receivable collection period1 3 4 4 6 4 6 6 3 5 8 8 4 6 4 4 5 1 2 2 2 — — —

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 104.82 = 3

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Paycom Software Inc., operating cycle calculation (quarterly data)

No. days

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
Average inventory processing period 1 1 1 3 3 3 2 3 2 2 3 3 3 4 3 4 2 3 3 3 — — —
Average receivable collection period 3 4 4 6 4 6 6 3 5 8 8 4 6 4 4 5 1 2 2 2 — — —
Short-term Activity Ratio
Operating cycle1 4 5 5 9 7 9 8 6 7 10 11 7 9 8 7 9 3 5 5 5 — — —

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 cycle = Average inventory processing period + Average receivable collection period
= 1 + 3 = 4

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

Paycom Software Inc., average payables payment period 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
Payables turnover 37.84 29.09 22.87 13.25 19.61 13.93 14.28 28.05 15.72 14.82 10.70 18.20 12.92 31.30 19.40 21.73 22.38 27.83 23.64 14.43 — — —
Short-term Activity Ratio (no. days)
Average payables payment period1 10 13 16 28 19 26 26 13 23 25 34 20 28 12 19 17 16 13 15 25 — — —

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 37.84 = 10

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Paycom Software Inc. number of days of payables outstanding decreased from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Cash Conversion Cycle

Paycom Software Inc., cash conversion cycle calculation (quarterly data)

No. days

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
Average inventory processing period 1 1 1 3 3 3 2 3 2 2 3 3 3 4 3 4 2 3 3 3 — — —
Average receivable collection period 3 4 4 6 4 6 6 3 5 8 8 4 6 4 4 5 1 2 2 2 — — —
Average payables payment period 10 13 16 28 19 26 26 13 23 25 34 20 28 12 19 17 16 13 15 25 — — —
Short-term Activity Ratio
Cash conversion cycle1 -6 -8 -11 -19 -12 -17 -18 -7 -16 -15 -23 -13 -19 -4 -12 -8 -13 -8 -10 -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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 1 + 3 – 10 = -6

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Paycom Software Inc. cash conversion cycle deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.