Paychex Inc (PAYX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 4,040,500 | 4,105,800 | 4,033,500 | 3,901,700 |
| Property, plant and equipment | US$ in thousands | 411,700 | 419,100 | 417,600 | 404,500 | 396,300 | 385,000 | 393,000 | 398,100 | 401,300 | 399,500 | 398,600 | 395,400 | 395,800 | 393,100 | 392,400 | 396,000 | 407,400 | 403,800 | 401,700 | 403,400 |
| Fixed asset turnover | 12.82 | 12.44 | 12.34 | 12.58 | 12.63 | 12.78 | 12.26 | 11.89 | 11.49 | 11.26 | 10.87 | 10.64 | 10.25 | 10.03 | 10.13 | 10.05 | 9.92 | 10.17 | 10.04 | 9.67 |
May 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,278,300K ÷ $411,700K
= 12.82
The fixed asset turnover ratio for Paychex Inc has shown a consistent upward trend over the past few years, indicating a more efficient utilization of the company's fixed assets to generate revenue. The ratio has averaged around 11 to 13 times annually, reflecting that for every dollar invested in fixed assets, the company has been generating revenue between 11 to 13 times.
The upward trend in the fixed asset turnover ratio suggests that Paychex Inc has been effectively managing and utilizing its fixed assets to drive revenue growth. This indicates that the company has been able to generate more sales relative to its investment in property, plant, and equipment over time.
Overall, the consistent improvement in the fixed asset turnover ratio demonstrates Paychex Inc's ability to maximize the productivity of its fixed assets and enhance its operational efficiency, which is a positive signal for investors and stakeholders.