Paylocity Holdng (PCTY)

Debt-to-capital ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,033,060	842,863	613,463	476,930	392,908
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,033,060K)
= 0.00

Based on the data provided for Paylocity Holdng's debt-to-capital ratio from June 30, 2020, to June 30, 2024, it is evident that the company consistently maintained a debt-to-capital ratio of 0.00 throughout this period. A debt-to-capital ratio of 0.00 indicates that the company did not have any debt in relation to its capital structure. This implies that Paylocity Holdng primarily financed its operations and investments through equity, rather than taking on debt.

A debt-to-capital ratio of 0.00 is generally viewed positively by investors and creditors as it suggests a lower level of financial risk and leverage. Companies with lower debt levels are often considered more financially stable and less vulnerable to economic downturns or fluctuations in interest rates.

Overall, the consistent 0.00 debt-to-capital ratio for Paylocity Holdng demonstrates a conservative approach to capital structure management, emphasizing financial stability and possibly reflecting confidence in the company's ability to generate sufficient internal funds to support its growth and operations.