Paylocity Holdng (PCTY)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	260,093	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	66,171	69,064	57,535	58,448
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		25.18%	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%	16.84%	18.45%	17.35%	18.89%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $260,093K ÷ ($—K + $1,033,060K)
= 25.18%

Paylocity Holdng's return on total capital has shown a positive trend over the past several quarters, reflecting the company's ability to generate returns on the capital employed in its operations. The return on total capital increased from 17.35% in Q3 2019 to 25.18% in Q2 2024. This improvement indicates that the company's profitability and efficiency in utilizing its total capital have been on an upward trajectory.

The consistent increase in the return on total capital demonstrates that Paylocity Holdng has been delivering value to its investors and efficiently utilizing its assets and liabilities to generate profits. This upward trend may indicate effective management of resources and strategic decision-making by the company's leadership team.

Overall, the steady increase in Paylocity Holdng's return on total capital is a positive indicator of the company's financial performance and suggests that it has been successful in maximizing returns for its shareholders while effectively managing its capital resources.