Paychex Inc (PAYX)
Number of days of payables
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 14.18 | 17.15 | 12.83 | 14.28 | 16.13 | |
| Number of days of payables | days | 25.73 | 21.28 | 28.45 | 25.55 | 22.63 |
May 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 14.18
= 25.73
The number of days of payables for Paychex Inc has fluctuated over the past five fiscal years, ranging from a low of 21.28 days in May 2023 to a high of 28.45 days in May 2022. The number of days of payables indicates the average number of days it takes for the company to pay its suppliers or creditors.
In general, a lower number of days of payables suggests that the company is paying its bills more quickly, which could be indicative of strong cash flow management or negotiating power with suppliers. Conversely, a higher number of days of payables may indicate that the company is taking longer to pay its obligations, which could be a sign of financial difficulties or strained supplier relationships.
Analyzing the trend in Paychex Inc's number of days of payables over the past five years can provide insights into the company's financial health, liquidity, and efficiency in managing its working capital. It is essential for investors and stakeholders to monitor this metric alongside other financial ratios to assess the company's overall performance and sustainability.