Paylocity Holdng (PCTY)

The data indicates that Paylocity Holding exhibited a consistent absence of current debt obligations relative to its assets and equity during the period from June 30, 2021, to June 30, 2025. Specifically, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all reported as zero across all these dates, suggesting that the company did not utilize debt financing during this timeframe. This implies a fully equity-financed capital structure with no dependence on external debt, which enhances the company's financial stability and reduces its financial risk profile.

The financial leverage ratio, however, shows variability over the period. It was recorded at 5.06 in 2021, increased to a peak of 7.84 in 2022, and subsequently declined to 4.38 in 2023, further decreasing to 4.11 in 2024, and reaching 3.56 in 2025. This ratio measures the proportion of total assets financed through leverage; despite the zero debt ratios, the leverage ratio suggests that total assets are financed through other means—most likely equity or internal funds—yet the ratio still fluctuates over time. The decrease in the leverage ratio over the years reflects a potential reduction in asset financing complexity or an increase in equity base, indicating conservative capital management and a relatively low reliance on debt.

Overall, the solvency profile of Paylocity Holding is characterized by an absence of leverage through debt financing, supplemented by a decreasing trend in the financial leverage ratio. This pattern signifies a robust solvency position with minimal financial risk, supported primarily by equity capital, and suggests a conservative and potentially stable financial structure during the analyzed period.

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Coverage ratios

The interest coverage ratio for Paylocity Holding has demonstrated substantial improvement over the period from June 30, 2021, to June 30, 2023. Specifically, the ratio increased from 61.81 times in 2021 to 84.85 times in 2022, reflecting an enhanced ability to service interest expenses with earnings before interest and taxes (EBIT). The upward trajectory continues markedly in 2023, with the ratio reaching 206.15 times, indicating an exceptionally strong capacity to cover interest obligations. This significant increase suggests that the company's profitability or operating earnings have grown considerably relative to its interest expenses, reflecting strong financial health and low risk of interest coverage concerns.

No data is available for the interest coverage ratios for June 30, 2024, and June 30, 2025, indicating that these figures are either not reported or not relevant at this time. Overall, the trend over the three years points to a markedly strengthened financial position concerning interest obligations, with the company demonstrating an increasingly comfortable margin of safety for covering its interest expenses.