Paylocity Holdng (PCTY)

Inventory turnover

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
Cost of revenue (ttm) US$ in thousands 498,223 486,282 475,210 458,064 444,571 424,353 401,286 383,963 367,039 347,727 327,551 308,296 287,002 268,658 250,446 233,167 219,298 206,123 196,878 188,760
Inventory US$ in thousands — — — — — — 3,358,800 2,610,790 2,699,520 3,275,990 3,134,250 0 4,047,280 — — 0 — — — —
Inventory turnover — — — — — — 0.12 0.15 0.14 0.11 0.10 — 0.07 — — — — — — —

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $498,223K ÷ $—K
= —

The inventory turnover ratio for Paylocity Holding has exhibited a significant period of inactivity up to the end of 2021, with no data available for the first half of 2021 and most of 2020. Starting from June 30, 2022, there was a notable emergence of the ratio at 0.07, indicating a very low turnover rate during that period. This initial figure suggests that inventory, likely comprising software or related digital assets rather than physical goods, turned over very infrequently.

Subsequently, the ratio showed modest increases, reaching 0.10 at the end of 2022, and further rising to 0.11 in the first quarter of 2023. The upward trend continued, with the ratio reaching 0.14 by the second quarter of 2023, and then stabilizing at 0.15 in the third quarter of 2023. This gradual increase over time reflects a slow but ongoing improvement in inventory management or sales efficiency concerning inventory assets.

In the latest available data for December 31, 2023, the ratio slightly decreased to 0.12, though it remains higher than the values observed earlier in 2022 and 2023. Overall, the data indicates that Paylocity’s inventory turnover has been relatively low and slow to improve, consistent with a business model heavily centered on digital or intangible assets where traditional inventory turnover metrics may not fully capture operational efficiency. The lack of data before mid-2022 suggests that the company’s inventory or equivalent assets began to be recognized or became relevant in the financial reporting around that time.