Paylocity Holdng (PCTY)

Paylocity Holding's Days of Inventory on Hand (DOH) has fluctuated significantly over the past five years. In Jun 30, 2024, the company did not provide a specific number for DOH, which may indicate a change in reporting practices. However, in Jun 30, 2023, the DOH was 2,684.52 days, reflecting a substantial increase from the previous year. This prolonged DOH suggests that the company holds inventory for an extended period, potentially leading to higher carrying costs and inventory obsolescence risks.

On the contrary, in Jun 30, 2022, the DOH was reported at 5.67 days, a significant decrease from the prior year. This improvement indicates a more efficient management of inventory levels, as the company held inventory for a much shorter period.

In Jun 30, 2021, the DOH spiked to 2,921.39 days, approaching the levels seen in 2024. This sharp increase may imply issues related to inventory management or challenges in sales forecasting, leading to excess inventory accumulation.

Lastly, in Jun 30, 2020, the DOH was at 2,592.46 days, suggesting a similar situation to 2021 with prolonged inventory holding periods.

Overall, Paylocity Holding's DOH performance shows significant variability, indicating potential challenges in managing inventory efficiently and effectively over the years. Further investigation into the underlying reasons behind these fluctuations would be necessary to assess the overall impact on the company's financial health and operational effectiveness.

Peer comparison

Jun 30, 2024