Paylocity Holdng (PCTY)

Receivables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	1,595,220	1,402,520	1,174,600	852,651	635,627
Receivables	US$ in thousands	41,642	32,997	25,085	15,754	6,267
Receivables turnover		38.31	42.50	46.82	54.12	101.42

June 30, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,595,220K ÷ $41,642K
= 38.31

The receivables turnover ratio for Paylocity Holding demonstrates a declining trend over the period from June 30, 2021, to June 30, 2025. Specifically, the ratio decreased from 101.42 in 2021 to 54.12 in 2022, further declining to 46.82 in 2023, then to 42.50 in 2024, and finally reaching 38.31 in 2025.

This continuous decrease indicates that the company has been collecting its accounts receivable less frequently over time. A high receivables turnover typically reflects efficient credit and collection policies, whereas a declining ratio suggests a potential slowdown in collection efficiency or an extension of credit terms to customers.

The sharp reduction in the ratio from 2021 to 2022 may be indicative of significant operational or strategic changes affecting collection processes or customer payment behaviors. The subsequent gradual decline in subsequent years further supports the hypothesis of a diminishing collection rate, although the ratio remains relatively high, implying that receivables are still being collected relatively quickly compared to industry norms.

Overall, the trend warrants closer attention to the company's credit policies and collection practices, as sustained decreases in receivables turnover could impact cash flow and liquidity position if not managed appropriately.