Paylocity Holdng (PCTY)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	239,393	303,711	260,015	262,905	261,502	246,536	220,624	189,126	155,026	124,500	91,501	81,431	84,594	74,868	66,633	64,846	58,043	55,259	63,857	63,620
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,233,750	1,208,740	1,172,140	1,105,910	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
Return on total capital		19.40%	25.13%	22.18%	23.77%	25.31%	22.42%	22.36%	21.19%	18.39%	16.20%	13.50%	13.33%	13.79%	13.24%	13.15%	13.87%	12.17%	12.16%	15.64%	16.45%

June 30, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $239,393K ÷ ($—K + $1,233,750K)
= 19.40%

The analysis of Paylocity Holding’s return on total capital reveals a generally upward trend over the period examined, with some fluctuations. As of September 30, 2020, the return stood at 16.45%, indicating a reasonably high level of profitability relative to the company's total capital at that point. Throughout the subsequent quarters, the metric exhibited some variability, with a slight decline observed by March 31, 2021, when it dropped to 12.16%. This decrease was followed by a modest recovery, with values generally maintaining a range between approximately 12% and 14% during 2021 and into mid-2022.

From the latter half of 2022 onward, the return on total capital demonstrated a positive trajectory, rising from 13.33% on September 30, 2022, to 13.50% at year-end and reaching 16.20% by March 31, 2023. The growth accelerated significantly in 2023, with the metric increasing to 18.39% by June 30, 2023, and further climbing to 21.19% as of September 30, 2023. The upward momentum continued into early 2024, where the return reached 22.36% at the end of December 2023 and saw a slight increase to 22.42% in March 2024.

The most notable growth occurred between March and June 2024, when the return surged to 25.31%, reflecting substantial improvements in profitability relative to total capital during this period. Although there was a slight decline to 23.77% in September 2024 and further to 22.18% by December 2024, the figure remained elevated compared to prior years. The recovery was evident again in early 2025, with the return reaching 25.13% in March, before decreasing to 19.40% by June 2025.

Overall, the data suggests that Paylocity Holding has experienced considerable increases in return on total capital from late 2022 onwards, indicating improved operational efficiency and profitability. The volatility observed in certain quarters suggests periodic fluctuations, but the long-term trend points toward enhanced performance and effective utilization of total capital resources in recent periods.