Paylocity Holdng (PCTY)

Payables 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
Payables US$ in thousands 17,347 8,719 5,464 16,039 8,638 5,181 7,973 8,749 6,153 7,968 7,611 6,235 8,374 5,051 6,600 6,910 4,230 3,319 2,771 3,209
Payables turnover 28.72 55.77 86.97 28.56 51.47 81.91 50.33 43.89 59.65 43.64 43.04 49.45 34.27 53.19 37.95 33.74 51.84 62.10 71.05 58.82

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $498,223K ÷ $17,347K
= 28.72

The payables turnover ratio for Paylocity Holding has exhibited notable fluctuations over the period from September 2020 through June 2025. Initially, the ratio was relatively high at 58.82 times as of September 30, 2020, indicating a brisk likelihood of settling payables within a short period. This trend peaked at 71.05 times at the end of 2020, suggesting an improved efficiency in managing trade payables.

Throughout 2021, the ratio experienced a decline, dipping to 33.74 times by September 2021, a potential indication of lengthening payables or a strategic extension of payment terms. It partially recovered in late 2021 and early 2022, reaching approximately 53.19 times in March 2022 before decreasing again to approximately 34.27 times by June 2022. The ratio then increased again towards the end of 2022, reaching 49.45 in September 2022 and stabilizing around the low 40s in subsequent quarters.

In 2023, the ratio showed some volatility but increased notably in the first quarter to 81.91 times, implying a significant acceleration in paying suppliers within that period. However, the ratio fell again to 51.47 in June 2024, then sharply declined to 28.56 in September 2024, and subsequently rebounded to a high of 86.97 in December 2024. In early 2025, the ratio decreased again to 55.77 in March before falling to 28.72 in June 2025.

Overall, the pattern indicates periods of both increased and decreased efficiency in paying suppliers, with some episodes of rapid turnover potentially reflecting strategic payment management, cash flow considerations, or supplier relationship strategies. The significant fluctuations highlight a lack of a consistent trend and suggest that Paylocity's payables management has been responsive to internal or external financial conditions over this period.