Paylocity Holdng (PCTY)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 35.01 | 39.91 | 54.12 | 101.42 | 114.02 | |
| DSO | days | 10.43 | 9.15 | 6.74 | 3.60 | 3.20 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 35.01
= 10.43
The Days of Sales Outstanding (DSO) for Paylocity Holding has shown an increasing trend over the past five years. In June 2020, the DSO stood at 3.20 days, subsequently increasing to 3.60 days in June 2021, 6.74 days in June 2022, 9.15 days in June 2023, and reaching 10.43 days in June 2024.
This increasing trend in DSO may indicate a slower collection of accounts receivable over time, which can potentially impact the company's cash flow and liquidity position. A higher DSO suggests that it is taking longer for Paylocity to collect payments from its customers, which could lead to increased credit risk or inefficient working capital management.
It would be important for Paylocity Holding to closely monitor and manage its accounts receivable process to improve DSO and ensure timely collection of outstanding payments to maintain financial stability and cash flow efficiency.
Peer comparison
Jun 30, 2024