Paylocity Holdng (PCTY)
Pretax margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 277,015 | 158,614 | 83,597 | 57,104 | 67,118 |
| Revenue | US$ in thousands | 1,402,520 | 1,174,600 | 852,651 | 635,627 | 561,329 |
| Pretax margin | 19.75% | 13.50% | 9.80% | 8.98% | 11.96% |
June 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $277,015K ÷ $1,402,520K
= 19.75%
Paylocity Holding's pretax margin has shown a positive trend over the past five years, indicating improving profitability before taxes. The pretax margin increased from 11.96% in 2020 to 19.75% in 2024, reflecting a steady growth in the company's ability to generate profits from its operations.
The consistent improvement in pretax margin suggests that the company has been effectively managing its operating expenses and increasing its revenue generation, resulting in higher profitability levels. This could be attributed to factors such as operational efficiencies, cost control measures, pricing strategies, or revenue growth initiatives.
Overall, the gradual increase in pretax margin demonstrates Paylocity Holding's financial strength and ability to sustain and enhance its profitability over the years, which is a positive indicator for investors and stakeholders.
Peer comparison
Jun 30, 2024