Paylocity Holdng (PCTY)

Days of sales outstanding (DSO)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Receivables turnover		38.31	42.50	46.82	54.12	101.42
DSO	days	9.53	8.59	7.80	6.74	3.60

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 38.31
= 9.53

The analysis of Paylocity Holding's Days of Sales Outstanding (DSO) over the period from June 30, 2021, to June 30, 2025, reveals a consistent upward trend. Starting at 3.60 days in June 2021, the DSO showed a notable increase by June 2022, reaching 6.74 days. The upward trajectory continued through June 2023, with the DSO rising further to 7.80 days. This incremental increase persisted into subsequent years, with the DSO reaching 8.59 days in June 2024 and further increasing to 9.53 days by June 2025.

This pattern indicates a gradual elongation in the time it takes for the company to collect receivables from its customers. The relative increase from 3.60 days to 9.53 days over four years suggests a shift toward longer collection cycles, which could be influenced by changes in customer payment terms, credit policies, or collection effectiveness.

Overall, the rising DSO figures imply a decrease in receivables turnover efficiency, which warrants further analysis to understand underlying causes such as credit policy adjustments or shifts in customer payment behavior. It is important to monitor whether this trend stabilizes or accelerates, as persistent increases in DSO may have implications for cash flow and liquidity management.