Paylocity Holdng (PCTY)

Fixed asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,402,520	1,174,600	852,651	635,627	561,329
Property, plant and equipment	US$ in thousands	60,640	64,069	62,839	59,835	66,737
Fixed asset turnover		23.13	18.33	13.57	10.62	8.41

June 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,402,520K ÷ $60,640K
= 23.13

The fixed asset turnover ratio for Paylocity Holdng has shown a consistent increasing trend over the past five years. This ratio measures how efficiently the company generates revenue from its investment in fixed assets.

The ratio has increased from 8.41 in June 2020 to 23.13 in June 2024, indicating that the company has been more effective in utilizing its fixed assets to generate sales over the years. This suggests that Paylocity Holdng has improved its operational efficiency and productivity in utilizing its fixed assets to drive revenue growth.

A higher fixed asset turnover ratio signifies that the company is getting more revenue relative to its investment in fixed assets, which is generally seen as a positive indicator of operational efficiency and effective asset management.

Overall, the increasing trend in the fixed asset turnover ratio for Paylocity Holdng reflects the company's ability to generate more sales from its fixed assets, which is a positive sign of efficiency and productivity in its operations.