Paychex Inc (PAYX)
Days of inventory on hand (DOH)
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | 0.26 | 0.26 | 0.34 | — | — | — | — | — | 0.32 | 0.33 | 0.33 | 0.29 | 0.36 | 0.38 | 0.37 | 0.28 | 0.32 | 0.32 | |
| DOH | days | — | — | 1,386.13 | 1,378.05 | 1,059.25 | — | — | — | — | — | 1,128.86 | 1,095.20 | 1,101.09 | 1,252.87 | 1,012.06 | 972.88 | 996.60 | 1,292.66 | 1,123.42 | 1,144.62 |
May 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The days of inventory on hand (DOH) for Paychex Inc has fluctuated over the past few years, indicating potential inefficiencies in managing inventory levels. The DOH was significantly high at 1,386.13 days in November 2023, suggesting that the company held inventory for an extended period before it was sold. This was followed by a decrease in DOH to 1,378.05 days in February 2024.
The trend of high DOH continued in prior periods, with values exceeding 1,000 days in various quarters. This could point towards challenges in inventory management, potentially leading to increased carrying costs and reduced liquidity.
However, there were periods such as in February 2020 and August 2020 when the DOH was relatively lower, indicating potential improvements in inventory turnover efficiency during those quarters.
Overall, the fluctuating DOH for Paychex Inc suggests the need for a more consistent and efficient inventory management strategy to optimize working capital and enhance operational performance.