Paylocity Holdng (PCTY)

Return on equity (ROE)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	206,766	140,822	90,777	70,819	64,455
Total stockholders’ equity	US$ in thousands	1,033,060	842,863	613,463	476,930	392,908
ROE		20.01%	16.71%	14.80%	14.85%	16.40%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $206,766K ÷ $1,033,060K
= 20.01%

Paylocity Holdng's return on equity (ROE) has shown a positive trend over the five-year period from June 30, 2020, to June 30, 2024. The company's ROE increased from 16.40% in 2020 to 20.01% in 2024, indicating improved efficiency in generating profits from shareholders' equity.

The ROE of 20.01% in 2024 reflects that for every dollar of shareholders' equity, Paylocity generated a return of 20.01 cents in net income. This signifies effective utilization of equity capital to generate profits for the company.

The consistent increase in ROE over the years suggests that Paylocity's management has been successful in increasing profitability and efficiency in utilizing the shareholders' equity. This upward trend indicates that the company is becoming more profitable and efficient in generating returns for its shareholders.

Overall, the improvement in Paylocity Holdng's ROE demonstrates its ability to generate higher returns on shareholders' equity, making it an attractive investment opportunity for investors seeking companies with strong profitability and efficient capital utilization.