Paychex Inc (PAYX)
Payables 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 |
| Payables | US$ in thousands | 129,800 | 118,700 | 89,200 | 80,900 | 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 |
| 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 |
May 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,540,400K ÷ $129,800K
= 11.87
The Payables Turnover ratio for Paychex Inc. shows notable fluctuations over the analyzed periods, indicating variations in the company's efficiency in settling its accounts payable obligations.
Initially, the ratio was relatively high at 20.36 as of August 31, 2020, reflecting a swift payment cycle to suppliers. A steady decline follows, reaching a low of 11.78 in February 2022, suggesting that the company was taking longer to settle its payables during this period. This decrease could be indicative of strategic payment deferrals, increased reliance on credit terms, or operational factors affecting cash flow.
Post-February 2022, the ratio exhibits some recovery and stabilization, rising to 17.15 by May 2023, and maintaining a level of around 15 in subsequent periods. Notably, there is a temporary spike to 18.53 in August 2024, possibly signaling a period of faster payments or improved liquidity management, followed by a slight decline to 16.97 in November 2024, and further to 12.82 in February 2025.
Overall, the trend demonstrates a pattern of decreasing payables turnover from 2020 through early 2022, indicating extended payables periods. Subsequently, the ratios fluctuate within a narrower range, reflecting some improvements or changes in payment practices. The observed variability may be impacted by seasonal factors, company-specific strategies, or broader economic conditions affecting supplier payment terms.