Paylocity Holdng (PCTY)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	227,127	206,766	140,822	90,777	70,819
Total assets	US$ in thousands	4,389,430	4,245,460	3,695,680	4,809,010	2,414,880
ROA		5.17%	4.87%	3.81%	1.89%	2.93%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $227,127K ÷ $4,389,430K
= 5.17%

The return on assets (ROA) for Paylocity Holding demonstrates a notable upward trend over the analyzed period from June 30, 2021, to June 30, 2025. At the close of fiscal year 2021, the ROA was 2.93%, indicating a modest level of profitability relative to the company's total assets. In the subsequent year, 2022, the ROA declined to 1.89%, reflecting a decrease in efficiency or profitability in utilizing assets during that period.

However, starting from fiscal year 2023, the ROA experienced a significant recovery and upward momentum, increasing to 3.81%. This suggests an improvement in operational efficiency or profitability relative to assets employed. The positive trajectory continued into fiscal year 2024, where the ROA further increased to 4.87%, signifying an enhanced ability to generate profit from the company's assets. The trend persisted into fiscal year 2025, with the ROA reaching 5.17%, marking the highest point in the observed period.

This progression highlights an overall improvement in the company's asset utilization and profitability capabilities over the four-year span, despite the temporary decline observed in 2022. The increasing ROA suggests effective management strategies, operational improvements, or favorable market conditions contributing to greater efficiency in generating earnings from the company's asset base as of the most recent fiscal year.