Paychex Inc (PAYX)
Receivables turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,571,700 | 5,278,300 | 5,007,100 | 4,611,700 | 4,056,800 |
| Receivables | US$ in thousands | 1,975,000 | 1,625,300 | 1,426,200 | 1,318,200 | 1,053,600 |
| Receivables turnover | 2.82 | 3.25 | 3.51 | 3.50 | 3.85 |
May 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,571,700K ÷ $1,975,000K
= 2.82
The receivables turnover ratio for Paychex Inc. demonstrates a declining trend over the analyzed period from May 31, 2021, to May 31, 2025. Specifically, the ratio decreased from 3.85 in 2021 to 3.50 in 2022, indicating a slight slowdown in the company's efficiency in collecting its accounts receivable within a year. The ratio remained relatively stable in 2023 at 3.51, suggesting an unchanged collection cycle compared to the previous year.
However, from 2023 onwards, a more noticeable decline is observed, with the ratio falling to 3.25 in 2024 and further dropping to 2.82 in 2025. This consistent decrease signifies that the company has been taking progressively longer to collect receivables, implying a potential deterioration in collection efficiency or changes in credit policies, customer base, or billing cycles.
Overall, the downward trajectory of the receivables turnover ratio indicates a trend toward slower collection periods over the five-year span, which could have implications for liquidity and cash flow management.