Paychex Inc (PAYX)

Fixed asset turnover

May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021
Revenue US$ in thousands 5,571,700 5,278,300 5,007,100 4,611,700 4,056,800
Property, plant and equipment US$ in thousands 396,300 480,000 498,800
Fixed asset turnover 12.63 9.61 8.13

May 31, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,571,700K ÷ $—K
= —

The fixed asset turnover ratio for Paychex Inc. demonstrates a consistent upward trend over the period from May 31, 2021, through May 31, 2023. Specifically, the ratio increased from 8.13 in 2021 to 9.61 in 2022, reflecting a relative improvement in the company’s efficiency in generating revenue from its fixed assets. This upward movement suggests that the firm has been increasingly effective at utilizing its fixed assets to produce sales, potentially indicating enhanced asset management or more productive asset deployment.

From 2022 to 2023, the ratio further rose to 12.63, representing a significant increase in fixed asset efficiency. Such a substantial jump might be indicative of operational improvements, asset disposals, or strategic shifts that have optimized the utilization of fixed assets to support revenue generation. The continued rising trend over these years signifies positive operational performance and a possible strategic focus on maximizing asset productivity.

Data beyond May 31, 2023, is unavailable, indicating that either the ratio was not calculated or disclosed for subsequent periods. Nonetheless, the steady and notable increase in the fixed asset turnover ratio over the observed timeframe underscores a trajectory of improved asset efficiency, which is generally interpreted as a sign of effective management and operational optimization.