Paychex Inc (PAYX)
Inventory turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,479,300 | 1,453,000 | 1,356,300 | 1,271,200 | 1,280,800 |
| Inventory | US$ in thousands | — | 4,216,700 | — | 3,834,800 | 3,497,100 |
| Inventory turnover | — | 0.34 | — | 0.33 | 0.37 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,479,300K ÷ $—K
= —
Based on the provided data, it can be observed that Paychex Inc's inventory turnover ratio has fluctuated over the past five years. In 2020, the inventory turnover ratio was 0.37, indicating that the company sold and replaced its inventory approximately 0.37 times during the year. However, in 2021 and 2023, the inventory turnover ratios decreased to 0.33 and 0.34, respectively, suggesting a decrease in the efficiency of inventory management during those years.
It is important to note that the absence of data for 2024 and 2022 makes it challenging to analyze the trend accurately. Nonetheless, the fluctuation in the inventory turnover ratio highlights the need for further investigation into the company's inventory management practices and its impact on the overall operational efficiency and financial performance of Paychex Inc.