PAYCNEUTRAL

Return on Equity (ROE)

37.1%

Updated 294h ago

Sector Performance

87th percentile

PAYC

37.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity, with 37.1% meaning PAYC earns about $0.37 for every $1 of equity.

This is well above the sector median of 13.9%, placing PAYC in the 86th percentile among its peers. The year-over-year change is not available, and the quarter-over-quarter change is also not available, so there is no trend data to assess the direction of the metric over time. The combination of a very high current ROE with no trend information means the strong profitability level suggests an opportunity, but the lack of historical context prevents a firm conclusion on momentum or stability. This metric supports the overall NEUTRAL verdict because, while the high ROE indicates efficient use of equity, the absence of trend data introduces uncertainty that balances the positive signal.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PAYC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are PAYC's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.