Paylocity Holdng (PCTY)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | 0.12 | 0.15 | 0.14 | 0.11 | 0.10 | — | 64.41 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 35.01 | 40.15 | 39.79 | 41.14 | 39.91 | 39.90 | 40.80 | 42.95 | 54.12 | 44.46 | 74.39 | 84.20 | 101.42 | 65.01 | 95.51 | 122.09 | 114.02 | 95.66 | 119.37 | 126.43 |
| 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 |
| Working capital turnover | 3.44 | 2.81 | 3.37 | 3.99 | 4.29 | 5.18 | 8.35 | 13.58 | 7.67 | 10.07 | 9.04 | 11.63 | 3.83 | 3.74 | 2.60 | 2.50 | 2.21 | 3.42 | 4.23 | 4.31 |
The activity ratios of Paylocity Holding provide insights into how efficiently the company is managing its assets and liabilities.
1. Inventory turnover: The inventory turnover ratio indicates the number of times a company sells its entire inventory during a specific period. The trend for Paylocity Holding's inventory turnover is not consistently available in the provided data. However, in December 2023, the turnover was 0.12, indicating that the company's inventory turnover is relatively low, suggesting slower sales compared to the previous periods.
2. Receivables turnover: The receivables turnover ratio measures how many times a company collects its average accounts receivable balance during a period. The trend for Paylocity Holding's receivables turnover is generally positive and stable, ranging from 35.01 to 126.43 over the provided periods. Higher turnover ratios indicate more efficient collection of receivables, which is crucial for maintaining healthy cash flow.
3. Payables turnover: The payables turnover ratio indicates how quickly a company pays its suppliers. Paylocity Holding's payables turnover fluctuates over the periods, with the highest turnover recorded at 103.71 in September 2020 and the lowest at 31.72 in September 2019. A higher turnover ratio suggests that the company is managing its payables efficiently and may have good relationships with its suppliers.
4. Working capital turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Paylocity Holding's working capital turnover shows variation over the periods, with values ranging from 2.21 to 13.58. A higher turnover ratio indicates that the company is effectively using its working capital to generate revenue.
Overall, analyzing these activity ratios for Paylocity Holding indicates that the company shows varying levels of efficiency in managing its inventory, receivables, payables, and working capital to drive sales and maintain positive cash flow.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 3,055.08 | 2,481.85 | 2,684.52 | 3,438.72 | 3,492.59 | — | 5.67 | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 10.43 | 9.09 | 9.17 | 8.87 | 9.15 | 9.15 | 8.95 | 8.50 | 6.74 | 8.21 | 4.91 | 4.33 | 3.60 | 5.61 | 3.82 | 2.99 | 3.20 | 3.82 | 3.06 | 2.89 |
| Number of days of payables | days | 7.14 | 4.49 | 7.25 | 8.32 | 6.12 | 8.36 | 8.48 | 7.38 | 10.65 | 6.86 | 9.62 | 10.82 | 7.04 | 5.88 | 5.14 | 6.21 | 3.52 | 7.51 | 8.07 | 11.51 |
The Days of Inventory on Hand (DOH) for Paylocity Holdng has shown significant fluctuations over the periods provided. The company had a very high DOH of 3,055.08 days in December 2023, indicating a large amount of inventory relative to sales. This decreased significantly to 5.67 days in June 2022, suggesting improved inventory management efficiency. However, there are several periods where DOH data is missing, making it challenging to draw consistent conclusions.
On the other hand, the Days of Sales Outstanding (DSO) have generally decreased over time, indicating that the company is collecting its accounts receivable at a faster rate. This improvement in DSO from higher levels in the past reflects better credit management practices, leading to quicker cash inflows from sales.
The Number of Days of Payables shows varying trends as well, with the company taking different periods to settle its payables. The data indicates that the company has been able to negotiate longer payment terms with its suppliers at times, which can positively impact its cash flow position.
Overall, analyzing these activity ratios provides insights into the efficiency of Paylocity Holdng's working capital management and operational performance over the periods provided.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 23.13 | 22.27 | 20.46 | 19.56 | 18.33 | 18.23 | 16.83 | 15.17 | 13.57 | 12.36 | 11.71 | 10.95 | 10.62 | 9.63 | 9.12 | 8.63 | 8.41 | 8.02 | 7.30 | 6.80 |
| Total asset turnover | 0.33 | 0.27 | 0.29 | 0.34 | 0.32 | 0.26 | 0.25 | 0.30 | 0.18 | 0.16 | 0.28 | 0.18 | 0.26 | 0.22 | 0.20 | 0.28 | 0.28 | 0.24 | 0.22 | 0.31 |
Paylocity Holding's long-term activity ratios indicate the efficiency with which the company utilizes its assets. The fixed asset turnover ratio has shown an increasing trend over the years, reaching 23.13 in June 2024 from 6.80 in September 2019. This indicates that the company generated $23.13 in revenue for every $1 invested in fixed assets as of June 2024.
On the other hand, the total asset turnover ratio has fluctuated over the years, with a slight uptrend. As of June 2024, the total asset turnover ratio stands at 0.33, indicating that the company generated $0.33 in revenue for every $1 invested in total assets.
Overall, the increasing fixed asset turnover ratio suggests that Paylocity Holding has been more efficient in generating revenue from its fixed assets over time. However, the fluctuating trend in the total asset turnover ratio indicates that the company's efficiency in generating revenue from all assets has not been consistent. Further analysis would be needed to understand the underlying factors contributing to these trends and whether they are sustainable in the long term.