Paylocity Holdng (PCTY)

Days of sales outstanding (DSO)

		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
Receivables turnover		35.01	40.15	39.79	41.14	39.91	39.90	40.80	42.95	54.12	44.46	74.39	84.20	101.42	65.01	95.51	122.09	114.02	95.66	119.37	126.43
DSO	days	10.43	9.09	9.17	8.87	9.15	9.15	8.95	8.50	6.74	8.21	4.91	4.33	3.60	5.61	3.82	2.99	3.20	3.82	3.06	2.89

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 35.01
= 10.43

The Days Sales Outstanding (DSO) for Paylocity Holding has shown fluctuation over the past couple of years. DSO is a measure of how long it takes for a company to collect payments from its customers after a sale is made.

Looking at the trend, we observe that DSO has varied between 2.89 days and 10.43 days over the last few quarters. A lower DSO indicates that the company is efficient in collecting payments from customers, while a higher DSO could imply delays in receivables collection.

In the recent quarter, the DSO increased to 10.43 days, which suggests that it took the company longer to collect payments compared to the previous quarter. This could indicate potential challenges in accounts receivable management or changes in customer payment behaviors.

It is important for Paylocity Holding to closely monitor their DSO metric and take necessary actions to ensure efficient receivables management. This may involve improving credit policies, enhancing collection processes, or addressing any issues impacting timely customer payments.

Overall, the DSO trend provides insights into the company's liquidity position, operational efficiency, and effectiveness in managing its accounts receivable. Paylocity Holding should continue to analyze and optimize this metric to support its financial health and growth objectives.