SELECT id, `name`, primary_key, `key`, treemapgroup, name_cn, zacks_table_name, compare_key, compare_display_name from gurufocu_main.financial_definition where termpagedisplay=1 and `key` = 'rank_balancesheet' PAYC (Paycom Software) Financial Strength
GURUFOCUS.COM » STOCK LIST » Technology » Software » Paycom Software Inc (NYSE:PAYC) » Definitions » Financial Strength

Paycom Software (Paycom Software) Financial Strength

: 8 (As of Dec. 2023)
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Paycom Software has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Paycom Software Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Paycom Software's Interest Coverage for the quarter that ended in Dec. 2023 was 401.21. Paycom Software's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, Paycom Software's Altman Z-Score is 3.57.

Competitive Comparison

For the Software - Application subindustry, Paycom Software's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Paycom Software Financial Strength Distribution

For the Software industry and Technology sector, Paycom Software's Financial Strength distribution charts can be found below:

* The bar in red indicates where Paycom Software's Financial Strength falls into.


Paycom Software Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Paycom Software's Interest Expense for the months ended in Dec. 2023 was $-0 Mil. Its Operating Income for the months ended in Dec. 2023 was $107 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0 Mil.

Paycom Software's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*106.723/-0.266
=401.21

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Paycom Software Inc has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Paycom Software's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 1738.38
=0.00

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Paycom Software has a Z-score of 3.57, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.57 is strong.

* 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.

Paycom Software  (NYSE:PAYC) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Paycom Software has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Paycom Software Financial Strength Related Terms

Thank you for viewing the detailed overview of Paycom Software's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.

Paycom Software (Paycom Software) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Paycom Software Inc (NYSE:PAYC) » Definitions » Financial Strength
Comparable Companies
BSY DT APP SSNC TYL GRAB MANH AZPN PTC PCTY CRM XTER:SAP INTU NOW UBER CDNS SHOP WDAY XPAR:DSY ROP
Traded in Other Exchanges
PAYC:Mexico P1YC34:Brazil
Address
7501 W. Memorial Road, Oklahoma, OK, USA, 73142
Website
https://www.paycom.com
Paycom is a fast-growing provider of payroll and human capital management, or HCM, software primarily targeting clients with 50-10,000 employees in the United States. Paycom was established in 1998 and services about 19,000 clients as of 2022, based on parent company grouping. Alongside its core payroll software, Paycom offers various HCM add-on modules, including time and attendance, talent management, and benefits administration.
Executives
Chad R. Richison director, 10 percent owner, officer: President and CEO 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Jason D. Clark director 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Watts J C Jr director
Christopher Gene Thomas officer: SEVP of Operations 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Peters Frederick C Ii director BRYN MAWR BANK CORP, 801 LANCASTER AVE, BRYN MAWR PA 19010
Holly Faurot officer: Chief Sales Officer 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Justin Devon Long officer: EVP of Operations 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Bradley Scott Smith officer: Chief Information Officer 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Craig E. Boelte officer: Chief Financial Officer 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Felicia Williams director C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001
Sharen J Turney director THREE LIMITED PARKWAY, COLUMBUS OH 43230
Jon Evans officer: Chief Operating Officer 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Jeffrey D. York officer: Chief Sales Officer 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142
Robert J Levenson director 300 SEMINOLE AVENUE, P.H. 6B, PALM BEACH FL 33480
Kathy Oden-hall officer: See Remarks 7501 W. MEMORIAL ROAD, OKLAHOMA CITY OK 73142