Paylocity Holdng (PCTY)
Current ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 607,832 | 3,524,490 | 3,048,440 | 4,231,680 | 2,032,880 |
| Total current liabilities | US$ in thousands | 210,428 | 3,117,360 | 2,774,800 | 4,120,530 | 1,867,020 |
| Current ratio | 2.89 | 1.13 | 1.10 | 1.03 | 1.09 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $607,832K ÷ $210,428K
= 2.89
The current ratio of Paylocity Holding demonstrates a generally stable liquidity position over the years from June 30, 2021, through June 30, 2024, with values fluctuating modestly within a narrow range. Specifically, the ratio was 1.09 in 2021, decreased slightly to 1.03 in 2022, and then increased again to 1.10 in 2023, indicating consistent short-term liquidity that comfortably exceeds the minimum threshold of 1.0, which generally signifies that current assets are sufficient to cover current liabilities.
In the most recent period ending June 30, 2024, the current ratio further improved to 1.13, reflecting a modest enhancement in liquidity position, possibly due to better management of current assets or liabilities. The significant development appears in the projections for June 30, 2025, where the current ratio is forecasted to reach 2.89. This sharp increase suggests a substantially improved liquidity buffer, indicating that current assets are expected to be nearly three times greater than current liabilities in this future period.
Overall, the historical trend indicates stable liquidity, with a notable anticipated strengthening in 2025. This trend may reflect strategic efforts to bolster current assets or reduce short-term liabilities, thereby enhancing the company's capacity to meet its short-term obligations confidently in the coming years.
Peer comparison
Jun 30, 2025