Paycom Software, Inc. key statistics and ratios

In fiscal 2025, Paycom Software, Inc. had return on equity of 27.4%, an operating margin of 27.6%, debt equal to 0.0% of equity and a current ratio of 1.09. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Paycom Software, Inc.: financial ratios, annual
Fiscal year	2012Dec 2012	2013Dec 2013	2014Dec 2014	2015Dec 2015	2016Dec 2016	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025	LTMJun 2026
Gross margin	78.7%	80.6%	81.9%	84.2%	83.6%	83.4%	84.0%	85.1%	85.3%	84.7%	84.5%	83.7%	82.2%	83.2%	83.7%
Operating margin	—	8.8%	10.4%	15.3%	30.9%	30.0%	30.7%	30.7%	22.1%	24.0%	27.5%	26.6%	33.7%	27.6%	30.3%
Net margin	−0.5%	0.6%	3.8%	9.3%	21.4%	28.5%	24.2%	24.5%	17.0%	18.6%	20.5%	20.1%	26.7%	22.1%	22.8%
Free-cash-flow margin	6.5%	−0.2%	5.3%	11.8%	16.7%	16.3%	22.1%	17.8%	15.8%	18.8%	16.9%	17.3%	18.1%	19.9%	26.9%
Return on equity	−4.1%	8.1%	14.3%	24.3%	46.3%	50.7%	44.5%	41.9%	24.3%	25.3%	27.1%	27.4%	34.9%	27.4%	42.3%
Return on assets	—	0.1%	0.8%	2.5%	7.2%	9.4%	8.9%	9.0%	5.6%	6.7%	7.9%	8.4%	10.0%	6.7%	7.6%
Asset turnover	—	0.19	0.22	0.27	0.34	0.33	0.37	0.37	0.33	0.36	0.39	0.42	0.37	0.30	0.33
Current ratio	—	0.99	1.02	1.05	1.03	1.03	1.03	1.07	1.09	1.13	1.16	1.11	1.10	1.09	1.07
Debt to equity	0.0%	>999%	36.4%	26.2%	14.5%	12.6%	10.3%	6.2%	4.7%	3.3%	2.5%	2.2%	0.0%	0.0%	157.5%
Interest cover (operating income ÷ interest)	—	1.0x	4.6x	24.1x	98.2x	142.4x	—	—	—	—	151.5x	—	186.6x	166.8x	39.8x
Effective tax rate	—	56.6%	41.4%	37.5%	30.3%	3.3%	21.5%	20.1%	22.8%	23.4%	27.8%	27.9%	22.7%	26.8%	28.7%
R&D as % of revenue	2.1%	2.0%	2.9%	3.8%	6.4%	7.0%	8.2%	9.9%	10.7%	11.2%	10.8%	11.7%	12.9%	13.8%	12.1%
SG&A as % of revenue	70.8%	71.8%	71.5%	68.9%	52.7%	53.4%	53.3%	54.5%	63.2%	60.6%	57.0%	57.0%	48.6%	55.5%	53.4%
Capital spending as % of revenue	7.8%	16.0%	9.5%	7.4%	13.3%	13.7%	10.6%	12.6%	11.2%	11.4%	9.6%	11.4%	10.2%	13.2%	10.6%
Free cash flow ÷ net income	—	−31.9%	142.5%	126.2%	78.1%	57.3%	91.1%	72.7%	92.8%	101.4%	82.6%	85.8%	67.9%	90.0%	117.9%
Dividends ÷ net income	—	900.0%	—	—	—	—	—	—	—	—	—	19.0%	16.9%	18.7%	15.9%
Dividends and buybacks ÷ free cash flow	3.2%	—	—	—	64.6%	80.4%	84.2%	—	39.1%	—	40.7%	120.2%	60.9%	100.6%	13.5%

US$ thousands unless shown otherwise. Fiscal quarters.

Paycom Software, Inc.: financial ratios, quarterly
Quarter	2024 Q3Sept 2024	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026
Gross margin	80.5%	83.0%	84.1%	81.9%	82.7%	83.9%	84.7%	83.2%
Operating margin	23.2%	30.1%	34.9%	23.2%	22.8%	28.9%	36.8%	31.7%
Net margin	16.2%	23.0%	26.3%	18.5%	22.4%	20.9%	27.2%	20.2%
Free-cash-flow margin	9.9%	22.1%	27.3%	12.6%	16.2%	22.5%	31.9%	35.8%
Current ratio	1.19	1.10	1.20	1.30	1.22	1.09	1.08	1.07
Debt to equity	—	—	—	—	—	—	83.2%	157.5%
R&D as % of revenue	13.9%	13.5%	11.7%	15.5%	15.0%	13.3%	10.6%	9.8%
SG&A as % of revenue	57.2%	53.0%	49.2%	58.7%	59.9%	55.0%	48.0%	51.5%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

4 of 7 checks passed · June 30, 2026

What it owns · $5.2bn

Short-term assets $3.5bnLonger-term assets $1.7bn

What it owes, and who funded it · $5.2bn

Short-term liabilities $3.2bnLonger-term liabilities $1.4bnShareholders' equity $572m

Short-term assets cover short-term liabilities $3.5bn of assets due within a year against $3.2bn of liabilities due within a year.
Short-term assets cover long-term liabilities $3.5bn short-term assets against $1.4bn of longer-dated liabilities.
More cash than debt $198m of cash against $900m of debt.
Debt below 40% of shareholders' equity Debt is 157% of equity.
Debt burden no higher than five years ago Debt to equity moved from 3% to 157% over five years.
A year's operating cash flow covers at least 20% of debt $802m of operating cash flow against $900m of debt.
Operating profit covers interest at least five times over Operating income of $648m against $16m of interest.

From Paycom Software, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

66 /100

Moderate moat

How hard Paycom Software's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 14 / 20

Net income has been a median 8.9% of total assets over 10 years.
Durability 19 / 20

Operating margin has been a median 28.4%; its worst year was 18.8%.
Cash conversion 19 / 20

Free cash flow was positive in 10 of 10 years, at a median 18.1% of revenue.
Discipline 13 / 20

The diluted share count fell 10.4% over five years; stock-based pay has been a median 7.6% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (80 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Paycom Software, Inc.'s SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Paycom Software, Inc.