Paylocity Holdng (PCTY)

Net profit margin

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	206,766	140,822	90,777	70,819	64,455
Revenue	US$ in thousands	1,402,520	1,174,600	852,651	635,627	561,329
Net profit margin		14.74%	11.99%	10.65%	11.14%	11.48%

June 30, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $206,766K ÷ $1,402,520K
= 14.74%

The net profit margin of Paylocity Holding has shown a generally increasing trend over the past five years. In the latest fiscal year ending June 30, 2024, the net profit margin was 14.74%, representing a significant improvement compared to the previous years. This indicates that the company has been able to generate more profit relative to its revenue, which is a positive sign of efficiency in managing its costs and operations.

Although there were fluctuations in the net profit margin in the earlier years, the overall trend suggests a gradual improvement in profitability. The company may have implemented cost-saving measures or improved operational efficiency to achieve this margin expansion. Investors and stakeholders may view this trend positively as it reflects the company's ability to generate more profit from its business activities.

It is important for Paylocity Holding to sustain or further improve its net profit margin in the future to demonstrate continued profitability and financial health. Monitoring this ratio along with other key financial metrics will provide valuable insights into the company's performance and growth prospects.