Paylocity Holdng (PCTY)

Interest coverage

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	260,093	155,026	84,594	58,043
Interest expense	US$ in thousands	—	—	752	997	939
Interest coverage		—	—	206.15	84.85	61.81

June 30, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —

The interest coverage ratio for Paylocity Holding has demonstrated a significant upward trend 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 improvement in the company's ability to meet its interest obligations through its earnings. The most remarkable change occurred between 2022 and 2023, with the ratio nearly doubling to 206.15 times, indicating a substantial enhancement in earnings relative to interest expenses. This sharp increase signifies that the company has become markedly more capable of servicing its interest costs with its operating income, suggesting strong financial robustness in this area.

There is no available data for the interest coverage ratio beyond June 30, 2023, which limits the ability to analyze longer-term trends or assess future performance. Nonetheless, the observed progression points to a trajectory of improved operational efficiency and profitability, resulting in a progressively stronger position to cover interest expenses. It is important to consider that such a high ratio, particularly the jump to over 200 times, may also reflect extremely low interest expenses or exceptionally high earnings, both of which would be favorable for the company's financial health.