Paycom Software (BSP:P1YC34) ROCE % : 36.75% (As of Mar. 2025)

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What is Paycom Software ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Paycom Software's annualized ROCE % for the quarter that ended in Mar. 2025 was 36.75%.

Paycom Software ROCE % Historical Data

The historical data trend for Paycom Software's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Paycom Software ROCE % Chart

Paycom Software Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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25.21

25.16

27.56

28.78

39.68

Paycom Software Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
ROCE %	Get a 7-Day Free Trial															67.88	23.23	24.45	33.74	36.75

Paycom Software ROCE % Calculation

Paycom Software's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	3980.292	/	( ( (20566.91 - 12419.033)	+	(35751.25 - 23835.387) )	/ 2 )
	=	3980.292	/	( (8147.877	+	11915.863)	/ 2 )
	=	3980.292	/	10031.87
	=	39.68 %

Paycom Software's ROCE % of for the quarter that ended in Mar. 2025 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2025 )		(Q: Dec. 2024 )		(Q: Mar. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2025 )		(Q: Dec. 2024 )		(Q: Mar. 2025 )
	=	4401.492	/	( ( (35751.25 - 23835.387)	+	(26329.488 - 14292.756) )	/ 2 )
	=	4401.492	/	( ( 11915.863	+	12036.732 )	/ 2 )
	=	4401.492	/	11976.2975
	=	36.75 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2025) EBIT data.

Paycom Software (BSP:P1YC34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Paycom Software ROCE % Related Terms

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Paycom Software Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Paycom Software Inc (BSP:P1YC34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

PAYC:USA PAYC:Mexico 1PAYC:Italy 0KGH:UK 0PY:Germany 0PY:Germany

Address

7501 W. Memorial Road, Oklahoma, OK, USA, 73142

Website

https://www.paycom.com

Founded in 1998, Paycom is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, HR management, as well as time and labor. The company primarily services midsize businesses within the United States, targeting businesses with 50-10,000 employees. The company primarily generates revenue through the sale of subscriptions providing access to its HCM platform. To a lesser extent, the company also generates revenue from implementation services provided to customers as well as interest income generated from customer funds. As of fiscal 2024, the company serviced slightly over 37,500 customers and stored data on over 7 million employees.

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