Paylocity Holdng (PCTY)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,389,430 | 4,245,460 | 3,695,680 | 4,809,010 | 2,414,880 |
| Total stockholders’ equity | US$ in thousands | 1,233,750 | 1,033,060 | 842,863 | 613,463 | 476,930 |
| Financial leverage ratio | 3.56 | 4.11 | 4.38 | 7.84 | 5.06 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,389,430K ÷ $1,233,750K
= 3.56
The financial leverage ratio of Paylocity Holding exhibits notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased significantly from 5.06 in 2021 to a peak of 7.84 in 2022, indicating a period during which the company relied more heavily on debt financing relative to its equity base. This upward trend suggests an increased level of financial risk during that interval, as the company became more leveraged.
Subsequently, the ratio decreased to 4.38 in 2023 and further declined to 4.11 by 2024, signaling a trend toward deleveraging. This reduction suggests that the company might have reduced its debt levels or increased its equity base, thereby decreasing its reliance on borrowed funds. The downward movement continued into 2025, with the ratio reaching 3.56, reflecting a continued shift towards lower financial leverage.
Overall, the data indicates a peak in leverage in mid-2022 followed by a consistent deleveraging trend in subsequent years. This pattern may reflect strategic financial management aimed at reducing risk exposure or optimizing the capital structure. The declining leverage ratio over the recent years aligns with a potentially more conservative financial stance, decreasing the company's financial risk profile.
Peer comparison
Jun 30, 2025