Paylocity Holdng (PCTY)

Quick ratio

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
Cash US$ in thousands 398,070 477,785 482,364 778,549 401,811 492,695 366,904 305,031 288,767 233,692 120,053 65,484 139,756 96,465 84,104 66,431 202,287 175,453 218,696 221,514
Short-term investments US$ in thousands — — — — — — — — — — — — 4,456 4,456 4,456 3,151 4,456 6,823 13,637 18,554
Receivables US$ in thousands 41,642 43,629 43,471 34,317 32,997 33,714 32,476 30,111 25,085 27,449 24,540 21,519 15,754 17,794 9,830 8,094 6,267 9,211 6,118 4,672
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
Quick ratio 2.09 2.58 0.14 0.33 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

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($398,070K + $—K + $41,642K) ÷ $210,428K
= 2.09

The quick ratio of Paylocity Holding demonstrates a pattern of significant fluctuations over the analyzed period. Between September 2020 and March 2022, the ratio remained relatively low, ranging approximately from 0.09 to 0.17, indicating a consistent position where liquid assets were insufficient to cover immediate liabilities without relying on inventory or other less liquid assets. During this period, the ratio exhibited a declining trend, hitting a low of 0.02 in September 2021.

From late 2021 onward, a gradual improvement in the quick ratio is observed, rising from approximately 0.05 in December 2021 to 0.13 by September 2023. This upward movement suggests enhanced liquidity and increased availability of liquid assets relative to current liabilities, possibly reflecting better cash management or a reduction in short-term obligations.

The most notable change occurs in the first quarter of 2025, where the quick ratio sharply escalates to 2.58, followed by a decrease to 2.09 in the subsequent quarter. This substantial increase indicates a significant accumulation of liquid assets relative to current liabilities, signaling a potentially robust liquidity position at that time.

Overall, the historical trend of the quick ratio for Paylocity Holding indicates periods of liquidity stress in the earlier years, followed by a consistent improvement and substantial liquidity enhancement in recent periods. The ratios remain below 1.0 for most of the timeline, implying that the company generally has not had enough liquid assets to cover all short-term liabilities on hand, until the spike observed in early 2025.