Paylocity Holdng (PCTY)

Receivables turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Revenue (ttm)	US$ in thousands	1,595,221	1,551,771	1,498,504	1,447,885	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
Receivables	US$ in thousands	41,642	43,629	43,471	34,317	32,997	33,714	32,476	30,111	25,085	27,449	24,540	21,519	15,754	17,794	9,830	8,094	6,267	9,211	6,118	4,672
Receivables turnover		38.31	35.57	34.47	42.19	42.50	40.15	39.79	41.14	46.82	39.90	40.80	42.95	54.12	44.46	74.39	84.20	101.42	65.01	95.51	122.09

June 30, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,595,221K ÷ $41,642K
= 38.31

The receivables turnover ratio for Paylocity Holding has exhibited notable fluctuations over the analyzed period. Initially, at the end of September 2020, the ratio stood at approximately 122.09, indicating a high efficiency in collecting receivables. Subsequently, the ratio declined to 95.51 by December 2020 and further decreased to 65.01 in March 2021, reflecting a reduction in the company's collection efficiency during this period.

Throughout 2021, the ratio experienced volatility, rising again to 101.42 in June 2021 but later decreasing to 84.20 in September and dropping further to 74.39 in December. In 2022, the trend continued downward, with the ratio falling to 44.46 by March and marginally increasing thereafter to around 54.12 in June, then declining again to 42.95 in September and 40.80 by December.

The subsequent period demonstrated relative stability at lower levels, with the ratio remaining in the forties, specifically 39.90 in March 2023, modestly rising to 46.82 in June and stabilizing around 41.14 in September 2023. By December 2023, the ratio was slightly lower at 39.79. In early 2024, the ratio experienced slight increases, reaching 40.15 in March and 42.50 in June, but then slightly declining to 42.19 in September. The trend continued downward in the latter part of 2024, with the ratio dropping to 34.47 by December, and then experiencing a slight increment to 35.57 in March 2025, followed by an increase to 38.31 in June 2025.

Overall, the trend indicates a significant decline in the receivables turnover ratio from the high levels observed in 2020, suggesting a deterioration in the efficiency of receivables collection over time. While there are periods of slight recovery or stabilization, the general movement points to a longer-term decrease, which could imply elongated collection periods, increased receivables, or shifts in credit policies. This trend warrants further analysis of underlying factors affecting collection efficiency and receivables management within the company.