Paylocity Holdng (PCTY)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	398,070	401,811	288,767	139,756	202,287
Short-term investments	US$ in thousands	—	—	—	4,456	4,456
Total current liabilities	US$ in thousands	210,428	3,117,360	2,774,800	4,120,530	1,867,020
Cash ratio		1.89	0.13	0.10	0.03	0.11

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($398,070K + $—K) ÷ $210,428K
= 1.89

The cash ratio of Paylocity Holding demonstrates notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the cash ratio was 0.11 in 2021, indicating that the company's cash holdings were approximately 11% of its current liabilities. By June 30, 2022, this ratio declined significantly to 0.03, suggesting a diminished liquidity buffer in terms of cash assets relative to current obligations. Subsequently, the cash ratio increased modestly to 0.10 in 2023, nearly doubling the 2022 figure, which may reflect a strategic strengthening of cash reserves or a reduction in current liabilities. A further increase is observed in 2024, with the ratio reaching 0.13, indicating a continued improvement in cash availability relative to current liabilities. The most significant change occurs in 2025, where the cash ratio surges to 1.89, indicating that the company's cash holdings substantially exceed its current liabilities, more than doubling the coverage seen in prior years. This upward trajectory suggests a notable strengthening of liquidity in the company’s operational financial position, providing a robust cushion to meet short-term obligations. Overall, the data reflects periods of both constraint and ample liquidity, culminating in a markedly improved cash coverage position in the most recent year.