Paychex Inc (PAYX)
Fixed asset turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,571,700 | 5,439,500 | 5,369,800 | 5,310,800 | 5,278,300 | 5,212,800 | 5,154,500 | 5,086,900 | 5,007,100 | 4,921,800 | 4,816,800 | 4,735,000 | 4,611,700 | 4,496,600 | 4,332,300 | 4,207,500 | 4,056,800 | 3,942,700 | 3,973,700 | 3,980,700 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | — | — | 466,100 | 396,300 | 452,600 | 393,000 | 398,100 | 480,000 | 483,500 | 495,900 | 499,600 | 498,800 | 393,100 | 392,400 | 396,000 |
| Fixed asset turnover | — | — | — | — | — | — | — | 10.91 | 12.63 | 10.87 | 12.26 | 11.89 | 9.61 | 9.30 | 8.74 | 8.42 | 8.13 | 10.03 | 10.13 | 10.05 |
May 31, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,571,700K ÷ $—K
= —
The fixed asset turnover ratio for Paychex Inc. demonstrates notable fluctuations over the observed period, reflecting changes in the company's efficiency in utilizing its fixed assets to generate revenue.
Starting from August 31, 2020, the ratio was at 10.05, indicating a relatively strong utilization of fixed assets. This figure increased slightly to 10.13 by November 30, 2020, maintaining a high level of asset productivity. However, by February 28, 2021, the ratio declined marginally to 10.03, suggesting a slight decrease in asset efficiency.
During the subsequent period, the ratio exhibited a downward trend, reaching a low of 8.13 on May 31, 2021, implying less efficient utilization of fixed assets at that time. This downward movement continued into August 31, 2021, with the ratio rising modestly to 8.42, and further increasing to 8.74 by November 30, 2021.
From late 2021 through early 2022, the ratio demonstrated a recovery trend. It increased to 9.30 on February 28, 2022, and further to 9.61 on May 31, 2022. A significant surge occurred by August 31, 2022, reaching 11.89, indicative of improved fixed asset efficiency possibly due to operational improvements or asset optimization.
This upward momentum continued into late 2022, with the ratio rising to 12.26 on November 30, 2022, and reaching 10.87 by February 28, 2023. The ratio further increased to 12.63 on May 31, 2023, marking the highest levels within the observed period.
In the most recent period available, the ratio slightly declined to 10.91 as of August 31, 2023. Data beyond this point are not available, with no indicated figures for subsequent periods.
Overall, the company's fixed asset turnover ratio has experienced periods of decline and recovery, culminating in a peak around mid-2022 to mid-2023. The substantial increase observed in 2022 aligns with enhanced operational efficiency or strategic asset management, while the recent slight decrease may suggest a normalization or strategic shift balancing asset utilization with other operational factors.