Paylocity Holdng (PCTY)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 227,127 227,340 221,171 221,822 206,766 195,201 167,503 144,987 140,822 118,714 95,944 90,197 90,777 87,514 89,502 89,291 70,819 63,886 67,184 63,009
Total assets US$ in thousands 4,389,430 5,167,970 5,293,770 4,024,780 4,245,460 4,953,040 4,492,720 3,646,780 3,695,680 4,193,520 3,937,770 3,095,110 4,809,010 5,079,240 2,588,590 3,811,540 2,414,880 2,663,550 2,850,960 2,004,850
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%

June 30, 2025 calculation

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

The analysis of Paylocity Holding's Return on Assets (ROA) over the specified period reveals a generally favorable trend, characterized by fluctuations in the early years followed by a steady upward trajectory in recent periods. Initially, during the quarter ending September 30, 2020, the ROA was recorded at approximately 3.14%. This figure declined in the subsequent quarter to approximately 2.36%, reflecting a short-term reduction in asset efficiency or profitability.

Throughout the first half of 2021, the ROA experienced marginal increases and decreases, with the quarter ending June 30, 2021, showing an improvement to approximately 2.93%, up from 2.40% in the previous quarter. However, the quarter ending September 30, 2021, saw a slight decline to 2.34% before rebounding to 3.46% at the end of 2021.

In 2022, the ROA demonstrated more volatility, dropping sharply to around 1.72% in the first quarter and slightly increasing to about 1.89% in the second quarter. This was followed by a notable recovery to approximately 2.91% at the end of 2022. The subsequent quarters showed a moderate oscillation, but the overall trend remained positive, with ROA reaching approximately 2.83% in the first quarter of 2023.

From mid-2023 onward, a clear upward trend emerges. The quarter ending June 30, 2023, recorded a ROA of approximately 3.81%, which further increased to about 3.98% at the end of September 2023. This improving pattern continued into late 2023 and early 2024, with the ROA reaching around 4.87% in June 2024 and approximately 5.51% in September 2024, representing the highest levels observed in the dataset.

The positive momentum persisted into the first half of 2025, with ROA values stabilizing around 4.18% in December 2024 and climbing to about 4.40% in March 2025, culminating in an increase to approximately 5.17% by June 2025.

Overall, Paylocity Holding has exhibited a pattern of recovery and growth in its ROA over the analyzed period, particularly from mid-2023 onward. This suggests an enhancement in asset profitability and operational efficiency, indicating a potential strengthening of the company’s financial performance and value generation relative to its assets in recent periods.