Paylocity HoldingPCTY -1.96%71 Quick Ratio is 1.08 as of Mar. 2026, which is at its 10-year median of 1.08. GuruFocus rates PCTY with a GF Score™ of 71/100 and a GF Value™ of $225.43 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,864 Software companies, Paylocity Holding ranks worse than 73.5% on this metric.
Paylocity Holding has a quick ratio of 1.08. It generally indicates good short-term financial strength.
The historical rank and industry rank for Paylocity Holding's Quick Ratio or its related term are showing as below:
PCTY'
s Quick Ratio Range Over the Past 10 Years
Min: 1.02 Med: 1.08 Max: 1.32
Current: 1.08
During the past 13 years, Paylocity Holding's highest Quick Ratio was 1.32. The lowest was 1.02. And the median was 1.08.
PCTY's Quick Ratio is ranked worse than 73.5% of 2864
companies
in the Software industry
Industry Median: 1.7
vs PCTY: 1.08
Paylocity Holding (NAS:PCTY) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Paylocity Holding Quick Ratio Related Terms
Paylocity Holding Quick Ratio Historical Data
* Premium members only.
The historical data trend for Paylocity Holding's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Paylocity Holding's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paylocity Holding Quick Ratio vs Software Industry
For the Software industry and Technology sector, Paylocity Holding's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Paylocity Holding's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Paylocity Holding's Quick Ratio for the fiscal year that ended in Jun. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Paylocity Holding (PCTY) has a Quick Ratio of 1.08 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Paylocity Holding and its competitors. This is near median its historical median of 1.08. Over the past decade, Paylocity Holding's Quick Ratio has ranged from 1.02 to 1.32. According to the industry distribution chart, Paylocity Holding ranks #2105 out of 2864 companies in the Software industry, placing it in the top 73.5%.
Is Paylocity Holding's Quick Ratio too high?
Paylocity Holding's current Quick Ratio of 1.08 is near median its 10-year median of 1.08. Over the past 10 years, this metric has ranged from a low of 1.02 to a high of 1.32. The Software industry median Quick Ratio is 1.70. Paylocity Holding's value of 1.08 is 36.5% below this industry median. Based on the distribution chart, Paylocity Holding ranks #2105 out of 2864 companies in the Software industry, which is below the industry midpoint. Overall, Paylocity Holding has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Paylocity Holding's Quick Ratio compare to PEGA and PAYC?
According to the Software industry distribution chart, Paylocity Holding ranks #2105 out of 2864 companies for Quick Ratio. This places Paylocity Holding in the lower half of its industry. The industry median Quick Ratio is 1.70. Paylocity Holding's value of 1.08 is 36.5% below this benchmark. Historically, Paylocity Holding's own Quick Ratio has ranged from 1.02 to 1.32 over the past decade. While the company's 10-year median is 1.08 vs. the industry median of 1.70, Paylocity Holding has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,864 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paylocity Holding's current Quick Ratio of 1.08 is 36.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Paylocity Holding and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paylocity Holding's current Quick Ratio is 1.08, which is near median its own 10-year median of 1.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paylocity Holding stock overvalued right now?
Based on GuruFocus' analysis, Paylocity Holding (PCTY) is currently considered Possible Value Trap. The stock's GF Value™ is $225.43, compared to a current price of $101.76 — trading 54.9% below its estimated fair value. The current Quick Ratio is 1.08, which is near median its 10-year median of 1.08 and 36.5% below the Software industry median of 1.70. Paylocity Holding's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Paylocity Holding (PCTY), the current Quick Ratio is 1.08 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paylocity Holding (PCTY) Overvalued in 2026?
Based on GuruFocus' analysis, Paylocity Holding stock appears to be undervalued.
The current stock price of $101.76 is trading 54.9% below its estimated GF Value™ of $225.43.
GuruFocus considers Paylocity Holding to be Possible Value Trap.
Key valuation signals for PCTY:
Quick Ratio: 1.08 (near median its 10-year median of 1.08)
GF Value™: $225.43 vs. price of $101.76 (54.9% below fair value)
Industry Position: 36.5% below the Software median (#2105 of 2864)
No single metric tells the full story. See the PCTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paylocity is a cloud-based human capital management provider offering payroll, compliance, and human resources management solutions. With the addition of expense and IT management modules, Paylocity unifies back-office operations spanning HR, finance, and IT on a single platform and bills customers on a subscription basis. The firm's customer base skews toward the midmarket and is primarily based in the US. As of fiscal 2025, Paylocity has nearly 42,000 customers.
71GF Score
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