Paychex Inc (PAYX)
Fixed asset turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,278,300 | 5,007,100 | 4,611,700 | 4,056,800 | 4,040,500 |
| Property, plant and equipment | US$ in thousands | 411,700 | 396,300 | 401,300 | 395,800 | 407,400 |
| Fixed asset turnover | 12.82 | 12.63 | 11.49 | 10.25 | 9.92 |
May 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,278,300K ÷ $411,700K
= 12.82
The fixed asset turnover ratio for Paychex Inc has shown a consistent increasing trend over the past five years, from 9.92 in May 2020 to 12.82 in May 2024. This indicates that the company's efficiency in generating revenue from its fixed assets has been improving over time.
A high fixed asset turnover ratio signifies that Paychex has been effective in utilizing its fixed assets to generate sales. This efficiency can be attributed to factors such as operational improvements, better asset utilization, and effective cost management.
Overall, the increasing trend in the fixed asset turnover ratio for Paychex Inc reflects positively on the company's operations and financial performance, indicating its ability to generate more revenue from its fixed assets over the years.