Paylocity Holdng (PCTY)

Interest coverage

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 239,393 303,711 260,015 262,905 261,502 246,536 220,624 189,126 155,026 124,500 91,501 81,431 84,594 74,868 66,633 64,846 58,043 55,259 63,857 63,620
Interest expense (ttm) US$ in thousands 0 0 0 0 0 971 2,110 2,115 2,278 1,504 676 671 508 311 0 0 0 0 0 103
Interest coverage — — — — — 253.90 104.56 89.42 68.05 82.78 135.36 121.36 166.52 240.73 — — — — — 617.67

June 30, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $239,393K ÷ $0K
= —

The provided data indicates that Paylocity Holding’s interest coverage ratio has experienced considerable fluctuations over the analyzed periods. In September 2020, the ratio was notably high at 617.67, suggesting that the company's earnings before interest and taxes (EBIT) were exceptionally sufficient to cover interest expenses multiple times over. This elevated ratio is indicative of a strong financial position and low relative interest burden during that period.

Subsequent periods between December 2020 and September 2021 lack available data, which prevents assessment for this interval. The data then resumes in March 2022 with a ratio of 240.73, demonstrating a significant decrease from the previous high but still reflecting a robust capacity to service interest obligations relative to earnings.

Between March 2022 and September 2022, the ratio declined further to 166.52, and it continued to diminish through December 2022 to 135.36, through June 2023 to 68.05, reaching its lowest point in September 2023 at 89.42. Despite the downward trend, these figures still suggest that the company maintains a comfortable buffer to cover interest expenses, although the margin has narrowed substantially.

By the end of 2023 and into the first half of 2024, there is a marked increase: the ratio rises to 104.56 in December 2023 and further to 253.90 in March 2024. The significant upward movement in the interest coverage ratio indicates an improved capacity to meet interest obligations, potentially driven by increased earnings or reduced interest expenses during this period.

The absence of data after June 2024 limits further analysis, but the recent trend up to March 2024 portrays a recovery or strengthening in the company's financial durability with respect to interest coverage. Overall, while the ratio has fluctuated considerably, it remains predominantly well above critical thresholds, reflecting prudent financial management and resilience in covering interest expenses over the timeframe considered.