Paylocity Holdng (PCTY)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	441,729	367,039	287,002	219,298	182,010
Inventory	US$ in thousands	—	2,699,520	4,456	1,755,220	1,292,750
Inventory turnover		—	0.14	64.41	0.12	0.14

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $441,729K ÷ $—K
= —

Inventory turnover is a financial ratio that measures how many times a company's inventory is sold and replaced over a specific period. In the case of Paylocity Holding, the inventory turnover ratio has been fluctuating significantly over the past five years.

In 2024, the inventory turnover ratio was not provided. This could be due to data availability issues or other factors. In 2023, the inventory turnover was only 0.14, indicating that the company's inventory took a very long time to sell or turn into revenue during that period.

On the contrary, in 2022, the inventory turnover ratio spiked to an exceptionally high level of 64.41. This implies that Paylocity Holding efficiently managed its inventory, rapidly selling and replenishing its goods within that year.

In 2021 and 2020, the inventory turnover ratios dropped back down to 0.12 and 0.14, respectively. These lower ratios suggest that the company experienced slower inventory turnover during those years compared to the peak performance in 2022.

Overall, the fluctuation in Paylocity Holding's inventory turnover ratios indicates varying levels of efficiency in managing its inventory levels and sales over the past five years. Further analysis of the company's operational and market conditions would be needed to fully understand the reasons behind these fluctuations.