Paylocity Holdng (PCTY)

Receivables 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
Revenue (ttm)	US$ in thousands	1,402,515	1,353,681	1,292,257	1,238,904	1,174,598	1,095,092	1,001,205	924,234	852,651	791,155	731,238	681,530	635,627	598,765	584,358	570,403	561,329	551,113	519,019	493,849
Receivables	US$ in thousands	40,066	33,714	32,476	30,111	29,433	27,449	24,540	21,519	15,754	17,794	9,830	8,094	6,267	9,211	6,118	4,672	4,923	5,761	4,348	3,906
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

June 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,402,515K ÷ $40,066K
= 35.01

The receivables turnover ratio for Paylocity Holding has fluctuated over the past few quarters, indicating varying efficiency in collecting its accounts receivables. The ratio measures how many times during a period the company converts its accounts receivable into cash, with higher ratios suggesting faster collection.

The trend shows a general decrease in the receivables turnover ratio from Q3 2019 to Q2 2024, indicating a longer time to collect receivables. However, the ratio remains relatively high, suggesting that Paylocity Holding has been efficient in collecting its outstanding receivables compared to industry averages.

Q2 2022 marked a peak in the ratio at 54.12, indicating exceptional efficiency in collecting receivables during that quarter. Subsequently, Q4 2022 saw a significant drop, followed by fluctuations in the following periods.

Overall, despite the fluctuations, Paylocity Holding has maintained a healthy level of receivables turnover, suggesting effective management of its accounts receivables and cash flows. Further analysis and comparison with industry benchmarks could provide additional insights into the company's performance in this area.