Paylocity Holdng (PCTY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,233,750	1,033,060	842,863	613,463	476,930
ROE		18.41%	20.01%	16.71%	14.80%	14.85%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $227,127K ÷ $1,233,750K
= 18.41%

The return on equity (ROE) for Paylocity Holding demonstrates a generally upward trajectory over the period from June 30, 2021, to June 30, 2025. Specifically, the ROE remained relatively stable between June 2021 and June 2022, at approximately 14.8%. This stability indicates a consistent level of profitability relative to shareholders' equity during that period.

Subsequently, there was a notable increase by June 30, 2023, reaching 16.71%, reflecting an improvement in the company's ability to generate profit from its equity base. This positive trend continued into the fiscal year ending June 30, 2024, with ROE increasing further to 20.01%, signifying enhanced profitability efficiency and potential operational improvements or favorable market conditions.

However, by June 30, 2025, the ROE declined slightly to 18.41%, though it remained elevated compared to the earlier years. This slight decrease may be indicative of a moderation in profit margins or changes in the company's leverage or equity base, but overall, the ROE retained a level substantially above the initial years, suggesting sustained profitability.

Overall, the progression of Paylocity Holding’s ROE indicates a period of growth and increased efficiency in generating returns for shareholders, reaching a peak in mid-2024. The decline afterward, while notable, does not entirely offset the positive trend established in prior years, pointing to a period of strong financial performance with some deceleration in the latter part of the analyzed timeframe.