Paylocity Holdng (PCTY)

Working capital 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
Total current assets	US$ in thousands	3,524,490	4,246,530	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	1,663,150	1,957,990	2,034,420	1,325,740
Total current liabilities	US$ in thousands	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	1,408,940	1,796,800	1,911,860	1,211,080
Working capital turnover		3.44	2.81	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	2.21	3.42	4.23	4.31

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,402,515K ÷ ($3,524,490K – $3,117,360K)
= 3.44

The working capital turnover ratio for Paylocity Holding has varied over the past several quarters, indicating fluctuations in the efficiency with which the company is utilizing its working capital to generate revenue. A higher turnover ratio suggests that the company is able to generate more revenue relative to its working capital, indicating better efficiency in managing its liquidity and short-term assets.

The working capital turnover ratio ranged from 2.21 to 13.58 over the periods provided. The highest turnover ratio of 13.58 in September 2022 suggests that Paylocity Holding was extremely efficient in utilizing its working capital to generate revenue during that quarter. On the other hand, the lowest turnover ratio of 2.21 in March 2020 indicates a comparatively lower efficiency in the utilization of working capital during that period.

Overall, the trend in the working capital turnover ratio shows fluctuations but generally indicates that Paylocity Holding has been able to effectively manage its working capital to generate revenue, with varying degrees of efficiency across different quarters. Investors and stakeholders may consider monitoring this ratio to assess the company's liquidity management and operational efficiency.