Paylocity Holdng (PCTY)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 68.50% | 68.75% | 66.34% | 65.50% | 67.58% |
| Operating profit margin | 18.54% | 13.20% | 9.92% | 9.13% | 11.79% |
| Pretax margin | 19.75% | 13.50% | 9.80% | 8.98% | 11.96% |
| Net profit margin | 14.74% | 11.99% | 10.65% | 11.14% | 11.48% |
Paylocity Holding has shown consistent and strong profitability ratios over the past five years. The gross profit margin has been relatively stable, ranging from 65.50% to 68.75%, indicating efficient cost management and pricing strategies. The operating profit margin has shown an increasing trend, from 9.13% in 2021 to 18.54% in 2024, demonstrating improved operational efficiency and profitability.
Moreover, the pretax margin has also demonstrated steady growth, from 8.98% in 2021 to 19.75% in 2024, suggesting effective management of operating expenses and strong revenue generation. The net profit margin has been consistently above 10% over the years, reaching its peak at 14.74% in 2024, reflecting the company's ability to generate profits after accounting for all expenses, including interest and taxes.
Overall, Paylocity Holding's profitability ratios indicate a robust financial performance with improving margins, which bodes well for the company's financial health and growth prospects.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.13% | 4.19% | 1.76% | 2.40% | 3.33% |
| Return on assets (ROA) | 4.87% | 3.81% | 1.89% | 2.93% | 3.25% |
| Return on total capital | 25.18% | 18.39% | 13.79% | 12.17% | 16.84% |
| Return on equity (ROE) | 20.01% | 16.71% | 14.80% | 14.85% | 16.40% |
Paylocity Holding's profitability ratios have shown fluctuations over the past five years.
- Operating return on assets (Operating ROA) has steadily improved over the period, with a significant increase from 2019 to 2020 and a consistent upward trend thereafter. This indicates that the company's operating income generated from its assets has been increasing efficiently.
- Return on assets (ROA) has also exhibited an overall positive trend, although it fluctuated slightly in some years. The ratio indicates how effectively the company is generating profit from its total assets, and the increase over time suggests improving asset utilization.
- Return on total capital has shown a consistent upward trend, with significant growth from 2019 to 2020. This metric reflects the company's ability to generate returns from both equity and debt capital invested in the business.
- Return on equity (ROE) has demonstrated a generally positive trajectory, but with some fluctuations. ROE reflects the profitability of a company from the perspective of its shareholders, and Paylocity Holding has shown the ability to deliver returns to its equity investors, albeit with some variability over time.
Overall, Paylocity Holding's profitability ratios indicate an improving trend in terms of generating returns from its assets, capital, and equity. However, the fluctuations observed in some ratios highlight the importance of monitoring the company's financial performance closely to ensure sustained profitability.