Paylocity Holdng (PCTY)

Payables 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
Payables	US$ in thousands	8,638	6,153	8,374	4,230	1,755
Payables turnover		51.14	59.65	34.27	51.84	103.71

June 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $441,729K ÷ $8,638K
= 51.14

Paylocity Holding's payables turnover ratio has fluctuated over the past five years, ranging from a low of 34.27 in 2022 to a high of 103.71 in 2020. The payables turnover ratio indicates how efficiently the company is managing its payables by showing how many times during a period the company pays off its average accounts payable balance. A higher ratio typically indicates that the company is paying its suppliers more frequently, which may be beneficial for maintaining good relationships and potentially negotiating favorable terms. The decreasing trend from 2020 to 2022 suggests a potential slowdown in the company's payment of its accounts payable, which could have implications for supplier relationships and cash flow management. However, the ratio saw an improvement in 2023 and 2024, indicating better management of payables during those years. Overall, further analysis and comparison with industry benchmarks would provide more insights into Paylocity Holding's payables management efficiency.