Paylocity Holdng (PCTY)

Days of sales outstanding (DSO)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Receivables turnover		38.31	35.57	34.47	42.19	42.50	40.15	39.79	41.14	46.82	39.90	40.80	42.95	54.12	44.46	74.39	84.20	101.42	65.01	95.51	122.09
DSO	days	9.53	10.26	10.59	8.65	8.59	9.09	9.17	8.87	7.80	9.15	8.95	8.50	6.74	8.21	4.91	4.33	3.60	5.61	3.82	2.99

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 observed period indicates a pattern of gradual fluctuation with a general upward trend. Initially, at the end of September 2020, the DSO was approximately 2.99 days, signifying prompt collection of receivables. This figure rose modestly throughout the subsequent quarters, reaching 3.82 days at year-end 2020 and increasing further to approximately 5.61 days by the end of March 2021.

Following this period, the DSO demonstrated some variability but maintained an overall upward trajectory, peaking at around 8.95 days at the end of December 2022. This increase suggests a lengthening in the average collection period, potentially indicating more lenient credit policies, increased receivables aging, or changes in customer payment behaviors.

From March 2023 onward, the DSO stabilized in the vicinity of roughly 8.87 to 9.17 days, reflecting a consistent collection cycle. Notably, by the end of December 2024, the DSO had increased to approximately 10.59 days, marking the highest point in the observed span. The subsequent data through mid-2025 shows a slight decrease to about 9.53 days, but the ratio remains elevated relative to the initial values.

Overall, the trend suggests that Paylocity Holding's collection period has extended over time, with a notable increase of about 7 to 8 days from the initial sub-3-day period to over 10 days in late 2024. This pattern could imply changes in the credit and collection policies, shifts in customer payment practices, or other operational factors affecting receivables management. The relatively stable DSO in recent quarters post-2023 signals a period of operational consistency, although the elevated levels compared to initial periods warrant further exploration to assess potential impacts on cash flow and liquidity.