Paylocity Holdng (PCTY)

Days of inventory on hand (DOH)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Inventory turnover		—	—	0.12	0.15	0.14	0.11	0.10	—	64.41	—	—	—	—	—	—	—	—	—	—	—
DOH	days	—	—	3,055.08	2,481.85	2,684.52	3,438.72	3,492.59	—	5.67	—	—	—	—	—	—	—	—	—	—	—

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days a company holds inventory before it is sold. A lower DOH indicates that a company is efficiently managing its inventory, while a higher DOH may suggest inefficiencies or potential obsolescence.

Based on the historical data for Paylocity Holdng provided in the table, it is evident that the company's DOH has varied significantly over time. The DOH fluctuated from as low as 2,481.85 days to as high as 5.67 days over the periods reported.

The extreme values of DOH, such as 3,055.08 days and 3,438.72 days, could indicate certain irregularities or anomalies in the company's inventory management practices during those specific periods. A high DOH could imply excess inventory levels, slow-moving inventory, or difficulties in selling off existing stock.

On the other hand, the lower DOH of 5.67 days may suggest that the company improved its inventory turnover efficiency during that period, potentially leading to lower carrying costs and an overall healthier balance sheet.

Overall, it is crucial for Paylocity Holdng to closely monitor its inventory levels and actively manage its inventory turnover to ensure a more efficient use of resources and maintain a healthy liquidity position. A consistent effort to optimize inventory management can lead to improved profitability and sustainable growth for the company.