Paylocity Holdng (PCTY)

Operating return on assets (Operating ROA)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Operating income	US$ in thousands	260,093	155,026	84,594	58,043	66,171
Total assets	US$ in thousands	4,245,460	3,695,680	4,809,010	2,414,880	1,985,650
Operating ROA		6.13%	4.19%	1.76%	2.40%	3.33%

June 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $260,093K ÷ $4,245,460K
= 6.13%

Paylocity Holding's operating return on assets (operating ROA) has shown varying trends over the past five years. The operating ROA increased from 3.33% in 2020 to 6.13% in 2024, indicating an improvement in the company's ability to generate operating income relative to its assets. This positive trend suggests enhanced operational efficiency and profitability.

In 2021, the operating ROA decreased to 2.40%, reflecting a temporary decline in the company's ability to efficiently utilize its assets to generate operating income. However, Paylocity Holding rebounded in 2022 with an operating ROA of 1.76%, suggesting a partial recovery in operational performance.

The significant improvement in operating ROA to 4.19% in 2023 and further to 6.13% in 2024 highlights the company's efforts to enhance operational efficiency and profitability. These positive developments indicate that Paylocity Holding has been successful in effectively utilizing its assets to generate higher operating income in recent years.

Overall, the increasing trend in operating ROA for Paylocity Holding demonstrates a positive trajectory for the company's operational performance and financial health. It indicates that the company is becoming more efficient in generating operating income relative to its total assets, which is a favorable sign for investors and stakeholders.