Paylocity Holdng (PCTY)
Receivables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,402,520 | 1,174,600 | 852,651 | 635,627 | 561,329 |
| Receivables | US$ in thousands | 40,066 | 29,433 | 15,754 | 6,267 | 4,923 |
| Receivables turnover | 35.01 | 39.91 | 54.12 | 101.42 | 114.02 |
June 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,402,520K ÷ $40,066K
= 35.01
The trend in Paylocity Holdng's receivables turnover ratio over the past five years has shown a decreasing pattern. The ratio decreased from 114.02 in 2020 to 35.01 in 2024. This indicates that the company took longer to collect its accounts receivable in 2024 compared to previous years.
A lower receivables turnover ratio can suggest potential issues with collecting payments from customers efficiently and promptly. It may indicate changes in the company's credit policies, customer payment behavior, or an increase in outstanding receivables.
Further investigation into the reasons behind the declining receivables turnover ratio would be beneficial to assess the company's overall liquidity, efficiency in managing accounts receivable, and potential impact on cash flow and working capital management.
Peer comparison
Jun 30, 2024