Paychex Inc (PAYX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,540,400 | 1,521,700 | 1,514,100 | 1,499,100 | 1,479,300 | 1,473,900 | 1,467,000 | 1,462,200 | 1,453,000 | 1,443,200 | 1,422,500 | 1,394,800 | 1,356,300 | 1,312,100 | 1,288,300 | 1,276,600 | 1,271,200 | 1,247,100 | 1,259,000 | 1,262,500 |
| Inventory | US$ in thousands | — | — | — | 3,818,100 | — | 0 | 5,571,100 | 5,520,500 | 4,216,700 | -588,200 | -494,800 | — | — | — | 3,984,400 | 3,830,500 | 3,834,800 | 4,280,700 | 3,490,900 | 3,365,100 |
| Inventory turnover | — | — | — | 0.39 | — | — | 0.26 | 0.26 | 0.34 | — | — | — | — | — | 0.32 | 0.33 | 0.33 | 0.29 | 0.36 | 0.38 |
May 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,540,400K ÷ $—K
= —
The analysis of Paychex Inc.'s inventory turnover ratios over the specified periods reveals notable fluctuations and trends. During the fiscal year ending August 31, 2020, the ratio was approximately 0.38, indicating that the company turned over its inventory roughly once every 2.6 months. This ratio experienced a gradual decline over the subsequent quarters, reaching a low of approximately 0.29 by February 28, 2021, which suggests a decrease in the efficiency of inventory management or a shift in the company's operational structure.
From May 31, 2021, onward, the inventory turnover remained relatively stable around 0.33 to 0.32 through August 31, 2021, indicating a period of operational equilibrium. However, data points after this period become sparse or missing, with the ratios largely unreported until May 2023, when the ratio slightly increased to approximately 0.34, implying a marginal improvement in inventory utilization.
Subsequent data shows a slight decrease to about 0.26 by August 31, 2023, with the ratio maintaining this level through November 30, 2023. Notably, in the latest available period, August 31, 2024, the ratio increased to roughly 0.39. This uptick suggests an improvement in the efficiency of inventory management, with the company turning over its inventory faster compared to previous periods.
Overall, the inventory turnover ratio for Paychex Inc. has exhibited periods of decline and recovery, with recent data indicating a potential enhancement in inventory management efficiency. The pattern reflects fluctuations that may be influenced by operational adjustments, strategic shifts, or changes in demand and supply chain dynamics. However, the intermittent reporting and missing data points complicate a comprehensive trend analysis, emphasizing the importance of consistent reporting for more precise insights.