Paychex Inc (PAYX)
Receivables turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,278,300 | 5,007,100 | 4,611,700 | 4,056,800 | 4,040,500 |
| Receivables | US$ in thousands | 1,625,300 | 1,426,200 | 1,318,200 | 1,053,600 | 790,300 |
| Receivables turnover | 3.25 | 3.51 | 3.50 | 3.85 | 5.11 |
May 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,278,300K ÷ $1,625,300K
= 3.25
The receivables turnover ratio for Paychex Inc has been showing a decreasing trend over the past five years, from 5.11 in 2020 to 3.25 in 2024. This indicates that the company is taking longer to collect payments from its customers. A lower receivables turnover ratio could suggest issues with credit policies, collection efficiency, or the quality of customers. Paychex Inc may need to review its accounts receivable management processes to improve the efficiency of collecting payments from its clients and potentially enhance its cash flow position.