Paylocity Holdng (PCTY)
Working capital 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 |
Total current assets | US$ in thousands | 607,832 | 673,485 | 4,237,260 | 3,193,860 | 3,426,630 | 4,154,080 | 3,806,700 | 2,982,900 | 3,048,440 | 3,566,010 | 3,309,020 | 2,479,620 | 4,231,680 | 4,516,990 | 2,087,090 | 3,332,030 | 2,032,880 | 2,298,320 | 2,495,820 | 1,673,040 |
Total current liabilities | US$ in thousands | 210,428 | 202,363 | 3,705,620 | 2,500,700 | 3,117,360 | 3,765,190 | 3,422,860 | 2,672,230 | 2,774,800 | 3,354,660 | 3,189,100 | 2,411,580 | 4,120,530 | 4,438,440 | 2,006,170 | 3,273,450 | 1,867,020 | 2,138,370 | 2,271,260 | 1,444,530 |
Working capital turnover | 4.01 | 3.29 | 2.82 | 2.09 | 4.53 | 3.48 | 3.37 | 3.99 | 4.29 | 5.18 | 8.35 | 13.58 | 7.67 | 10.07 | 9.04 | 11.63 | 3.83 | 3.74 | 2.60 | 2.50 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,595,221K ÷ ($607,832K – $210,428K)
= 4.01
The working capital turnover ratios for Paylocity Holding over the observed periods reveal significant fluctuations indicating dynamic operational efficiency and liquidity management.
Initially, from September 30, 2020, to June 30, 2021, the ratio showed a steady upward trend, increasing from 2.50 to 3.83. This suggests an improved ability to generate sales relative to working capital during this period, possibly reflecting operational scaling or enhanced efficiency.
A notable spike occurred at September 30, 2021, where the ratio jumped to 11.63, indicating a substantial increase in sales revenue generated per unit of working capital. This sharp rise could be attributable to factors such as increased sales efficiency, reduction in working capital levels, or a favorable shift in operational dynamics.
Following this peak, the ratio displayed a downward trajectory, declining to 8.35 by December 31, 2022. Despite the decrease, the ratio remained relatively high compared to pre-2021 levels, suggesting continued efficiency but with some diminishing return or seasonal influences.
Between March 31, 2023, and September 30, 2023, the ratio further decreased to 3.99, indicating a decline in the efficiency of working capital utilization in generating sales. The subsequent data through December 2024 shows fluctuations within a narrower range, with ratios oscillating between approximately 2.09 and 4.53, reflecting periods of varying operational efficiency and potentially changing working capital management strategies.
Looking ahead, projections for the period through June 2025 indicate the ratio stabilizes around 3.29 to 4.01, suggesting a normalization of working capital turnover post-2023, possibly approaching a steady operational state.
In summary, the historical pattern of Paylocity Holding’s working capital turnover demonstrates periods of rapid efficiency gains followed by stabilization and slight declines. The data illustrates the company's capacity to leverage working capital effectively during certain periods, with fluctuations likely driven by operational, market, or strategic factors affecting sales performance and working capital management.
Peer comparison
Jun 30, 2025