Paylocity Holdng (PCTY)
Total asset 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 |
| Total assets | US$ in thousands | 4,245,460 | 3,695,680 | 4,809,010 | 2,414,880 | 1,985,650 |
| Total asset turnover | 0.33 | 0.32 | 0.18 | 0.26 | 0.28 |
June 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,402,520K ÷ $4,245,460K
= 0.33
Total asset turnover measures the efficiency of a company in generating sales revenue relative to its total assets. Paylocity Holdng's total asset turnover has varied over the past five years, ranging from 0.18 to 0.33.
In the most recent period, as of June 30, 2024, the total asset turnover stood at 0.33, indicating that for every dollar of assets the company holds, it generated $0.33 in sales. This suggests an improvement in asset utilization efficiency compared to the previous year's ratio of 0.32.
When looking back further, it is evident that the company's total asset turnover was relatively low in June 30, 2022, at 0.18. This may indicate lower revenue generation efficiency relative to its asset base during that period.
In general, an increasing total asset turnover ratio over time is typically considered favorable as it signifies that the company is becoming more efficient in utilizing its assets to generate sales revenue. Conversely, a declining ratio may signal inefficiencies in asset management or potential underperformance in generating sales revenue from its asset base. Paylocity Holdng's management should continue to monitor and improve this ratio to ensure optimal asset utilization and business performance.
Peer comparison
Jun 30, 2024