Paylocity Holdng (PCTY)
Solvency ratios
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 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 | 5.05 | 6.03 | 7.01 | 5.17 |
Paylocity Holding has shown a consistent pattern of having a low debt-to-assets, debt-to-capital, and debt-to-equity ratio, with all values consistently at 0.00 across multiple reporting periods. This indicates that the company operates with minimal financial leverage and maintains a strong financial position with minimal reliance on debt for its operations.
However, the financial leverage ratio has displayed significant fluctuations over time, ranging from 4.09 to 8.98. This suggests that the company's capital structure has varied significantly, with higher levels of financial leverage observed in recent periods.
Overall, while Paylocity Holding has maintained a conservative approach to debt financing, the fluctuating financial leverage ratio indicates a changing capital structure that may warrant further monitoring to ensure financial stability and sustainable growth in the future.
Coverage ratios
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4,001.43 | 1,896.43 | 1,137.24 | 735.90 | 542.05 | 461.11 | 363.10 | 346.51 | 457.26 | 415.93 | 374.34 | 364.30 | 339.43 | 328.92 | 389.37 | 402.66 | 429.68 | 348.81 | 236.77 | 202.94 |
Interest coverage measures a company's ability to meet its interest payments on outstanding debt using its operating income. A higher interest coverage ratio indicates a company is more capable of servicing its debt obligations.
Looking at the historical trend of Paylocity Holding's interest coverage ratio, we see fluctuations over the periods reported. The interest coverage ratio has shown an increasing trend over the years, indicating an improvement in the company's ability to cover its interest expenses with its operating income.
In the most recent period (June 30, 2024), Paylocity Holding's interest coverage ratio was extremely high at 4,001.43, which is significantly above the levels observed in previous quarters. This exceptionally high ratio could be a result of a sharp increase in operating income or a decrease in interest expenses during that period.
It is essential to note that a very high interest coverage ratio may not always be sustainable or ideal, as it could indicate underutilization of debt or inefficient capital structure management. Conversely, a very low interest coverage ratio may raise concerns about the company's ability to meet its interest payments.
Overall, the increasing trend in Paylocity Holding's interest coverage ratio signals an improvement in the company's ability to meet its interest obligations using its operating income. However, further analysis is necessary to understand the drivers behind the significant variations in the ratio across different periods and to assess the overall financial health of the company.