Paychex Inc (PAYX)
Payables turnover
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 1,280,800 | 1,253,300 | 1,249,700 | 1,219,700 |
| Payables | US$ in thousands | 104,300 | 94,000 | 92,300 | 95,300 | 84,700 | 122,500 | 86,700 | 84,700 | 105,700 | 111,400 | 85,900 | 79,000 | 89,000 | 73,900 | 70,400 | 62,000 | 79,400 | 67,700 | 76,300 | 61,700 |
| Payables turnover | 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 | 16.13 | 18.51 | 16.38 | 19.77 |
May 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,479,300K ÷ $104,300K
= 14.18
Paychex Inc's payables turnover ratio has displayed fluctuations over the past several quarters. The ratio measures how efficiently the company is managing its accounts payable by evaluating how many times a company pays off its average accounts payable balance during a specific period.
Looking at the trend, we observe a general pattern of fluctuation with some periods showing higher turnover ratios compared to others. There was a notable peak in payables turnover in August 2020 and subsequent gradual declines until May 2021. Subsequently, there was an upturn in the ratio until November 2021 before a slight decrease in February 2022. The ratio then showed volatility with fluctuations until the most recent data of May 2024.
Analyzing the ratio in conjunction with other financial metrics and industry benchmarks could provide deeper insights into Paychex Inc's liquidity management practices, supplier relationships, and overall financial health. Further examination is needed to understand the reasons behind the fluctuations in the payables turnover ratio.