Paylocity Holdng (PCTY)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,402,515	1,353,681	1,292,257	1,238,904	1,174,598	1,095,092	1,001,205	924,234	852,651	791,155	731,238	681,530	635,627	598,765	584,358	570,403	561,329	551,113	519,019	493,849
Property, plant and equipment	US$ in thousands	60,640	60,773	63,150	63,341	64,069	60,067	59,506	60,943	62,839	64,004	62,425	62,265	59,835	62,187	64,066	66,068	66,737	68,698	71,090	72,584
Fixed asset turnover		23.13	22.27	20.46	19.56	18.33	18.23	16.83	15.17	13.57	12.36	11.71	10.95	10.62	9.63	9.12	8.63	8.41	8.02	7.30	6.80

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,402,515K ÷ $60,640K
= 23.13

The fixed asset turnover ratio for Paylocity Holdng has shown a general increasing trend over the past few quarters, indicating a more efficient utilization of fixed assets in generating revenue. The ratio has consistently improved from 6.80 in the third quarter of 2019 to 23.13 in the second quarter of 2024.

A higher fixed asset turnover ratio suggests that the company is generating more revenue per dollar of fixed assets invested, which can be a positive sign of operational efficiency. This trend may indicate effective management of fixed assets and a streamlined operational process.

It is important to note that while a rising fixed asset turnover ratio is generally favorable, it should be considered in conjunction with other financial metrics to get a comprehensive view of the company's financial performance and efficiency. Monitoring this trend over time can provide insights into the company's operational improvements and ability to maximize returns on its fixed asset investments.