Paylocity Holdng (PCTY)

Payables turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	441,729	421,555	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	182,010	176,229	167,893	160,539
Payables	US$ in thousands	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	1,755	3,626	3,714	5,061
Payables turnover		51.14	81.37	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	103.71	48.60	45.21	31.72

June 30, 2024 calculation

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

Paylocity Holding's payables turnover ratio has fluctuated over the past few quarters, indicating variations in how efficiently the company is managing its accounts payable. The payables turnover ratio measures how many times in a period a company pays off its average accounts payable balance.

The payables turnover ratio ranged from a low of 31.72 in December 2019 to a high of 103.71 in September 2020, displaying significant variability. For the most recent quarter ending June 30, 2024, the payables turnover ratio stood at 51.14, which suggests that the company paid off its accounts payable approximately 51 times during the quarter.

An increasing payables turnover ratio over time generally signifies that the company is paying its suppliers more frequently, potentially indicating either improving liquidity or negotiating better credit terms. Conversely, a decreasing payables turnover ratio could suggest potential cash flow issues or changes in payment terms with suppliers.

It is important for stakeholders to monitor Paylocity Holding's payables turnover ratio along with other financial metrics to assess the company's liquidity, efficiency, and supplier relationships effectively.