Paylocity Holdng (PCTY)

Quick ratio

		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
Cash	US$ in thousands	401,811	492,695	366,904	305,031	288,767	233,692	120,053	65,484	139,756	96,465	84,104	66,431	202,287	175,453	218,696	221,514	250,851	114,325	75,900	100,529
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	4,456	4,456	4,456	3,151	4,456	6,823	13,637	18,554	34,556	66,308	69,849	29,130
Receivables	US$ in thousands	40,066	33,714	32,476	30,111	29,433	27,449	24,540	21,519	15,754	17,794	9,830	8,094	6,267	9,211	6,118	4,672	4,923	5,761	4,348	3,906
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
Quick ratio		0.14	0.14	0.12	0.13	0.11	0.08	0.05	0.04	0.04	0.03	0.05	0.02	0.11	0.09	0.10	0.17	0.21	0.10	0.08	0.11

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($401,811K + $—K + $40,066K) ÷ $3,117,360K
= 0.14

The quick ratio of Paylocity Holdng has shown variation over the past several quarters. The ratio indicates the company's ability to meet its short-term obligations with its most liquid assets.

From Dec 31, 2019 to Sep 30, 2020, the quick ratio ranged between 0.08 and 0.21, showing some volatility in the company's ability to cover its short-term liabilities. The ratio improved in the latter part of 2020 and early 2021, reaching 0.11 in Dec 31, 2020 and 0.09 in Mar 31, 2021. However, the ratio decreased to 0.02 in Sep 30, 2021, indicating a potential liquidity challenge at that point.

The quick ratio recovered in the following quarters, showing a significant increase to 0.14 in Jun 30, 2023 and remaining around this level until the most recent data point of Jun 30, 2024. This improvement suggests that Paylocity Holdng has enhanced its ability to cover immediate obligations with its liquid assets.

Overall, the trend in the quick ratio of Paylocity Holdng demonstrates fluctuations over time, but the recent improvement indicates a strengthened liquidity position in meeting short-term obligations. It would be important to monitor this ratio in future periods to assess the company's ongoing liquidity management.