Paychex Inc (PAYX)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 11.87 | 12.82 | 16.97 | 18.53 | 14.18 | 15.68 | 15.89 | 15.34 | 17.15 | 11.78 | 16.41 | 16.47 | 12.83 | 11.78 | 15.00 | 16.16 | 14.28 | 16.88 | 17.88 | 20.36 | |
| Number of days of payables | days | 30.76 | 28.47 | 21.50 | 19.70 | 25.73 | 23.28 | 22.96 | 23.79 | 21.28 | 30.98 | 22.25 | 22.16 | 28.45 | 30.99 | 24.34 | 22.59 | 25.55 | 21.63 | 20.41 | 17.92 |
May 31, 2025 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.87
= 30.76
The analysis of Paychex Inc.'s number of days of payables over the specified periods reveals fluctuations consistent with seasonal and operational considerations. Starting from approximately 17.92 days as of August 31, 2020, there was a general upward trend, peaking at 30.99 days on February 28, 2022. This increase indicates that Paychex extended its payables period over time, potentially reflecting changes in credit terms negotiated with suppliers, shifts in the company's liquidity management, or strategic decisions to optimize cash flows.
From the peak in early 2022, the payables days fluctuate with some periods experiencing declines, such as the low of 19.70 days in August 2024, which may suggest tighter payment policies or improved payment efficiency. Conversely, during certain periods like February 2022 and May 2025, payables extend again, surpassing 30 days, possibly indicating strategic elongation of payment cycles to support cash management or supplier relationship negotiations.
Overall, the data demonstrate variability with a notable tendency to extend the accounts payable period during periods close to or beyond one month, especially in early 2022 and mid-2025. This pattern may reflect seasonality, evolving supplier terms, or shifts in working capital strategies, but it generally suggests an adaptive approach to managing payables to optimize liquidity and operational flexibility.