Paylocity Holdng (PCTY)
Solvency ratios
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 | |
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Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Financial leverage ratio | 3.56 | 4.28 | 4.52 | 3.64 | 4.11 | 4.51 | 4.55 | 4.09 | 4.38 | 5.46 | 5.81 | 5.07 | 7.84 | 8.98 | 5.11 | 8.15 | 5.06 | 5.86 | 6.98 | 5.18 |
The analysis of Paylocity Holding’s solvency ratios over the specified periods reveals that the company maintains an exceptionally conservative financial structure, characterized by consistent zero levels in debt-related ratios.
Specifically, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all remain at 0.00 across all reporting dates from September 2020 through June 2025. This indicates that the company does not utilize debt financing for its operations or capital structure during this period. Consequently, the absence of leverage in these ratios suggests that Paylocity Holdng is financed entirely through equity or internal funds, reflecting a negligible or non-existent debt burden.
In contrast, the financial leverage ratio exhibits notable variability throughout the periods, with values ranging from approximately 3.56 to 8.98. The highest reported leverage ratio was observed around March 2022 at 8.98, implying a period where the company's assets were financed with significantly more financial leverage relative to equity, albeit without corresponding debt ratios. Following this peak, the leverage ratio declines consistently, reaching approximately 3.56 by June 2025. This downward trend indicates a reduction in reliance on external financial structuring, possibly due to increases in equity, internal cash flows, or asset growth that do not involve additional debt.
The aggregate data suggests that Paylocity Holdng operates with an extremely conservative approach toward leverage and debt financing. The completely zero debt ratios mean that traditional solvency concerns related to leverage—such as insolvency risk due to high debt levels—are minimal or non-existent. The fluctuations in the financial leverage ratio appear to be primarily attributable to changes in asset base or equity levels rather than shifts in debt levels.
In conclusion, the company's solvency position, as reflected by these ratios, indicates a debt-free or nearly debt-free capital structure with no apparent reliance on external borrowings. The variations in leverage ratios point to internal factors influencing asset and equity compositions rather than external debt management strategies.
Coverage ratios
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 | |
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Interest coverage | — | — | — | — | — | 253.90 | 104.56 | 89.42 | 68.05 | 82.78 | 135.36 | 121.36 | 166.52 | 240.73 | — | — | — | — | — | 617.67 |
The interest coverage ratios of Paylocity Holding demonstrate a generally strong capacity to meet interest obligations with operational earnings over the specified periods, although with notable fluctuations. In the fiscal quarter ending September 30, 2020, the ratio stood remarkably high at 617.67, indicating an exceptional ability to cover interest expenses. However, data for subsequent quarters through December 2021 is unavailable, suggesting either a transitional phase or reporting gaps.
Beginning with the quarter ending March 31, 2022, the ratio decreased to 240.73, reflecting a substantial but still robust interest coverage. Over the following periods, the ratio continued to decline, reaching 166.52 in June 2022 and further decreasing to 121.36 in September 2022, and maintaining a relatively stable level at 135.36 in December 2022. The downward trend persisted into 2023 with ratios of 82.78 in March, 68.05 in June, and a slight increase to 89.42 in September, with the ratio rising further to 104.56 by December 2023.
The upward movement observed in early 2024, with the ratio reaching 253.90 in March, indicates an improved ability to service interest expenses, potentially driven by increased earnings or decreased interest costs. Data for subsequent quarters in 2024 and beyond remain unavailable, limiting the capacity to assess ongoing trends.
Overall, while the interest coverage ratio exhibits significant variability, it remains generally above the threshold indicating significant financial flexibility. The sharp early decline from over 600 to below 100 over the span of two years suggests changes in earnings or interest expense structures, but the figures still imply that Paylocity Holding has maintained the ability to meet its interest obligations comfortably, especially in the most recent reported period of March 2024.