Paychex Inc (PAYX)

The days of inventory on hand (DOH) for Paychex Inc has fluctuated over the past five years. The DOH was not available for 2020 and 2022, suggesting a lack of specific inventory turnover data for those years. In 2021, the DOH was 996.60 days, indicating that, on average, Paychex held enough inventory to last for close to three years before selling it. This is a relatively high DOH ratio, which may suggest inefficiencies in inventory management.

In 2023, the DOH increased significantly to 1,059.25 days, further extending the time it takes for Paychex to sell its inventory. This increase could indicate challenges in aligning inventory levels with customer demand, potentially leading to excess inventory holding costs.

The DOH decreased slightly in 2024 to 1,101.09 days, but it still remains at a high level compared to industry benchmarks. This persistent high DOH ratio may point to potential risks, such as obsolete inventory, storage costs, and potential lack of agility in responding to changes in market conditions.

Overall, the trend in Paychex Inc's days of inventory on hand highlights the importance of closely monitoring inventory management practices to optimize working capital and operational efficiency.