Paylocity Holdng (PCTY)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 260,093 | 155,026 | 84,594 | 58,043 | 66,171 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,033,060 | 842,863 | 613,463 | 476,930 | 392,908 |
| Return on total capital | 25.18% | 18.39% | 13.79% | 12.17% | 16.84% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $260,093K ÷ ($—K + $1,033,060K)
= 25.18%
Paylocity Holding has shown a consistently improving trend in its return on total capital over the past five years. The return on total capital has increased from 16.84% in June 2020 to 25.18% in June 2024, indicating the company's ability to generate higher returns relative to its total invested capital. This improvement suggests that Paylocity is utilizing its capital more efficiently and effectively to generate profits for its stakeholders. The steady increase in return on total capital reflects positively on the company's operational performance and financial health. Overall, the upward trend in return on total capital indicates a positive trajectory for Paylocity Holdng in terms of its capital efficiency and profitability.
Peer comparison
Jun 30, 2024