Paylocity Holdng (PCTY)

Net profit margin

		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
Net income (ttm)	US$ in thousands	206,766	195,201	167,503	144,987	140,822	118,714	95,944	90,197	90,777	87,514	89,502	89,291	70,819	63,886	67,184	63,009	64,455	69,746	57,640	57,877
Revenue (ttm)	US$ in thousands	1,402,515	1,353,681	1,292,257	1,238,904	1,174,598	1,095,092	1,001,205	924,234	852,651	791,155	731,238	681,530	635,627	598,765	584,358	570,403	561,329	551,113	519,019	493,849
Net profit margin		14.74%	14.42%	12.96%	11.70%	11.99%	10.84%	9.58%	9.76%	10.65%	11.06%	12.24%	13.10%	11.14%	10.67%	11.50%	11.05%	11.48%	12.66%	11.11%	11.72%

June 30, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $206,766K ÷ $1,402,515K
= 14.74%

Paylocity Holding's net profit margin has shown fluctuations over the past few quarters. The net profit margin represents the percentage of revenue that translates into profit after accounting for all expenses.

Over the most recent quarter, the net profit margin stood at 14.74%, indicating that the company generated $0.1474 in profit for every $1 of revenue. This represents an improvement compared to the previous quarter's net profit margin of 14.42%.

Looking back over the last several quarters, the trend in net profit margin has been somewhat volatile, with fluctuations observed between 9.58% and 14.74%. It is essential to evaluate the factors driving these changes, such as changes in revenue, cost management, and overall efficiency of operations.

The increasing trend in net profit margin from 2020 to 2021 peaked at 13.10% in the first quarter of 2021. Subsequently, there was a slight decline, but the margins remained relatively stable above 10% suggesting a healthy profitability level.

Overall, a higher net profit margin indicates that the company is efficient in controlling costs and maximizing profitability from its revenue streams. Investors and stakeholders typically view a consistent or improving net profit margin positively as it demonstrates a healthy bottom line.