Paylocity Holdng (PCTY)

Return on equity (ROE)

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Net income (ttm)	US$ in thousands	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	64,455	69,746	57,640	57,877
Total stockholders’ equity	US$ in thousands	1,033,060	1,099,410	986,773	892,639	842,863	768,746	677,767	610,846	613,463	565,419	506,693	467,573	476,930	454,609	408,218	386,820	392,908	374,375	331,564	309,459
ROE		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%	16.40%	18.63%	17.38%	18.70%

June 30, 2024 calculation

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

The return on equity (ROE) of Paylocity Holding has shown a positive trend over the past several quarters, indicating the company's ability to generate profits from shareholders' equity. The ROE increased from 14.05% in March 2021 to 20.01% in June 2024, reaching its highest point in the available data.

This improvement in ROE suggests that Paylocity Holding has been effectively utilizing its equity to generate earnings for its shareholders. The steady increase in ROE reflects positively on the company's operational efficiency and profitability.

Overall, the consistent growth in ROE for Paylocity Holding demonstrates the company's ability to generate increasing returns for its shareholders over time, which is a favorable indication of its financial performance and management effectiveness.