PAYCNEUTRAL

PAYC Return on Equity (ROE) Analysis

41.1%

Updated 129h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for every dollar of shareholder equity; a 41.1% ROE means the company earns about $0.41 per $1 of equity.

Sector Performance

89th percentile

PAYC

41.1%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

37.1%(Aug 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates for every dollar of shareholder equity; a 41.1% ROE means the company earns about $0.41 per $1 of equity.

That level far exceeds the sector median of 13.4%, placing PAYC in the 89th percentile among peers. The year-over-year change is not available, but quarter-over-quarter ROE rose by 10.8%, from 37.1% to 41.1%; the longer eight-quarter trend is also not available. The combination of a very high ROE with only a single quarter of improvement suggests strong current profitability but limited visibility into whether that level is sustainable. This creates an opportunity if the performance persists, yet the missing longer trend raises uncertainty about durability.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.