Paychex Inc (PAYX)
Payables 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 |
| Payables | US$ in thousands | 104,300 | 84,700 | 105,700 | 89,000 | 79,400 |
| Payables turnover | 14.18 | 17.15 | 12.83 | 14.28 | 16.13 |
May 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,479,300K ÷ $104,300K
= 14.18
The payables turnover ratio for Paychex Inc has fluctuated over the past five years. In 2024, the company's payables turnover ratio was 14.18, indicating that the company paid its accounts payable approximately 14.18 times during the year. This ratio was lower compared to the previous year, which suggests that it took longer for the company to pay off its suppliers and vendors in 2024.
In 2023, the payables turnover ratio was 17.15, showing an improvement from the prior year. A higher ratio typically indicates that the company is managing its accounts payable more efficiently by paying off its obligations more frequently.
The payables turnover ratio in 2022 was 12.83, representing a decrease from the previous year. This may suggest that Paychex took longer to settle its payables in 2022 compared to 2021.
Similarly, in 2021 and 2020, the payables turnover ratios were 14.28 and 16.13, respectively. These ratios show a moderate level of turnover in accounts payable during those years.
Overall, the trend in Paychex Inc's payables turnover ratios indicates variability in how quickly the company is settling its accounts payable from year to year. It is important for investors and analysts to closely monitor changes in this ratio as it can provide insights into the company's liquidity management and relationships with its suppliers.