Paylocity Holdng (PCTY)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 498,223 | 441,729 | 367,039 | 287,002 | 219,298 |
| Payables | US$ in thousands | 17,347 | 8,638 | 6,153 | 8,374 | 4,230 |
| Payables turnover | 28.72 | 51.14 | 59.65 | 34.27 | 51.84 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $498,223K ÷ $17,347K
= 28.72
The payables turnover ratio for Paylocity Holding has exhibited notable fluctuations over the period from June 30, 2021 to June 30, 2025. Specifically, the ratio was 51.84 in 2021, indicating the company was settling its payables approximately 51.84 times within the fiscal year. This ratio decreased significantly to 34.27 in 2022, suggesting a lengthening in the average time taken to pay suppliers or a slowdown in the turnover of accounts payable.
In 2023, the ratio rebounded sharply to 59.65, surpassing the 2021 level and indicating a more rapid payment cycle or increased efficiency in settling payables. However, in the subsequent year, 2024, the ratio declined again to 51.14, reflecting a slowdown relative to the previous year but still remaining above the 2022 level.
Most notably, in 2025, the ratio decreased further to 28.72, representing a significant reduction in payable turnover. This suggests a substantial extension in the accounts payable period, possibly indicating delayed payments to suppliers or strategic management of cash flows to optimize liquidity.
Overall, the trend reveals variability in the company's accounts payable management, with periods of acceleration and deceleration in payables turnover. The recent decline to 28.72 may imply a strategic shift towards extended payment terms or adjustments in working capital management, warranting further examination of the company's payment policies and supplier arrangements to understand underlying operational or strategic motives.
Peer comparison
Jun 30, 2025