Paylocity Holdng (PCTY)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 68.77% | 68.66% | 68.29% | 68.36% | 68.30% | 68.65% | 68.95% | 69.01% | 68.75% | 68.25% | 67.28% | 66.64% | 66.34% | 66.04% | 65.75% | 65.79% | 65.50% | 65.58% | 66.31% | 66.91% |
| Operating profit margin | 19.06% | 19.47% | 18.78% | 19.65% | 18.65% | 18.22% | 17.07% | 15.27% | 13.20% | 11.37% | 9.14% | 8.81% | 9.92% | 9.46% | 9.11% | 9.51% | 9.13% | 9.23% | 10.93% | 11.15% |
| Pretax margin | 19.37% | 20.03% | 19.67% | 20.82% | 19.75% | 19.24% | 17.91% | 15.83% | 13.50% | 11.44% | 9.07% | 8.70% | 9.80% | 9.35% | 9.00% | 9.40% | 8.98% | 9.05% | 10.85% | 11.19% |
| Net profit margin | 14.24% | 14.65% | 14.76% | 15.32% | 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% |
The financial ratios for Paylocity Holdings reveal a consistent improvement in profitability over the analyzed period, reflecting a company with increasing efficiency in its operations and cost management.
Starting with gross profit margin, the data demonstrates a steady upward trend from approximately 66.91% as of September 30, 2020, to approximately 68.77% by June 30, 2025. This consistent increase suggests effective management of direct costs and favorable pricing strategies, leading to higher retained earnings on sales.
Operating profit margins exhibit more variability but overall show an upward trajectory. The margin increased from around 11.15% in September 2020 to approximately 19.06% in June 2025, indicating that the company has enhanced its operational efficiency, controlling operating expenses relative to sales. Notably, there was a rise from 11.37% in March 2023 to a peak of 19.65% in September 2024, before slightly tapering off.
Pretax margins mirror this trend, rising from approximately 11.19% in September 2020 to around 19.37% in June 2025, demonstrating improved profitability before tax considerations. The increase in pretax margin aligns with improvements in operating income and potentially reflects favorable non-operating income or expense management.
Net profit margins also show an upward movement, from roughly 11.05% in September 2020 to approximately 14.65% by March 2025. The net margin improvement is indicative of effective expense management extending beyond operational costs, possibly benefiting from tax efficiencies or lower interest expenses.
Overall, the margin expansion across all profitability ratios points to a company that has been progressively enhancing its profitability profile. The consistent improvements in gross, operating, pretax, and net profit margins suggest a robust underlying business model, effective cost control, and potentially favorable market conditions during this period.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.93% | 5.85% | 5.32% | 7.07% | 6.16% | 4.98% | 4.91% | 5.19% | 4.19% | 2.97% | 2.32% | 2.63% | 1.76% | 1.47% | 2.57% | 1.70% | 2.40% | 2.07% | 2.24% | 3.17% |
| Return on assets (ROA) | 5.17% | 4.40% | 4.18% | 5.51% | 4.87% | 3.94% | 3.73% | 3.98% | 3.81% | 2.83% | 2.44% | 2.91% | 1.89% | 1.72% | 3.46% | 2.34% | 2.93% | 2.40% | 2.36% | 3.14% |
| Return on total capital | 19.40% | 25.13% | 22.18% | 23.77% | 25.31% | 22.42% | 22.36% | 21.19% | 18.39% | 16.20% | 13.50% | 13.33% | 13.79% | 13.24% | 13.15% | 13.87% | 12.17% | 12.16% | 15.64% | 16.45% |
| Return on equity (ROE) | 18.41% | 18.81% | 18.87% | 20.06% | 20.01% | 17.76% | 16.97% | 16.24% | 16.71% | 15.44% | 14.16% | 14.77% | 14.80% | 15.48% | 17.66% | 19.10% | 14.85% | 14.05% | 16.46% | 16.29% |
The profitability ratios of Paylocity Holding over the period from September 2020 to June 2025 exhibit notable trends and fluctuations, reflecting the company's evolving operational efficiency and capital management.
Operating Return on Assets (Operating ROA) demonstrates a general upward trajectory, starting at 3.17% in September 2020. The ratio experienced minor declines in 2021, reaching a low of 1.70% in September 2021, but subsequently began to recover, culminating at 6.93% in June 2025. This indicates an improvement in the efficiency with which the company is utilizing its assets to generate operating income, especially evident from late 2022 onward.
Similarly, the standard Return on Assets (ROA) remained relatively stable with minor fluctuations, beginning at 3.14% in September 2020 and trending upward to 5.17% by June 2025. Between these points, the ROA showed periods of decline, notably in early 2022, but gradually recovered, suggesting enhanced overall asset utilization efficiency over time.
Return on Total Capital (ROTC) reveals a consistent improvement, particularly from March 2023 onward. Starting at approximately 12.16% in March 2021, it rose markedly to over 25% by June 2024 but then declined slightly to 19.40% by June 2025. This pattern indicates increased effectiveness in deploying total capital to generate profits, with a peak observed in mid-2024.
Return on Equity (ROE) displays more variability but generally trends upward from approximately 14.05% in March 2021 to a peak of 20.06% in September 2024. The ratio experiences some fluctuations but maintains a positive overall trajectory, reflecting improvements in profitability attributable to shareholder equity.
Overall, Paylocity's profitability ratios suggest a period of enhanced operational efficiency and capital utilization following some downturns in 2021. The trending increases in Operating ROA, ROA, ROTC, and ROE, particularly from late 2022 onward, imply progressive strengthening of profitability margins, effectiveness in asset and capital deployment, and value creation for shareholders over the analyzed period.