Paychex Inc (PAYX)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,278,300 | 5,212,800 | 5,154,500 | 5,086,900 | 5,007,100 | 4,921,800 | 4,816,800 | 4,735,000 | 4,611,700 | 4,496,600 | 4,332,300 | 4,207,500 | 4,056,800 | 3,942,700 | 3,973,700 | 3,980,700 | 4,040,500 | 4,105,800 | 4,033,500 | 3,901,700 |
| Receivables | US$ in thousands | 1,625,300 | 1,702,100 | 1,650,800 | 1,574,600 | 1,426,200 | 1,415,000 | 1,391,600 | 1,373,300 | 1,318,200 | 1,204,700 | 1,371,500 | 1,084,500 | 1,053,600 | 1,105,900 | 991,800 | 855,900 | 790,300 | 847,000 | 905,600 | 861,400 |
| Receivables turnover | 3.25 | 3.06 | 3.12 | 3.23 | 3.51 | 3.48 | 3.46 | 3.45 | 3.50 | 3.73 | 3.16 | 3.88 | 3.85 | 3.57 | 4.01 | 4.65 | 5.11 | 4.85 | 4.45 | 4.53 |
May 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,278,300K ÷ $1,625,300K
= 3.25
The receivables turnover ratio of Paychex Inc has been relatively stable over the past few periods, ranging from 3.06 to 5.11. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently.
From the trend analysis, we can observe that the receivables turnover ratio experienced some fluctuations, reaching its peak at 5.11 on August 31, 2020, and hitting its lowest point at 3.06 on February 29, 2024. However, overall, the company has maintained an average ratio around 3.5, with some variations.
A higher receivables turnover ratio implies that Paychex Inc is better at converting its credit sales into cash, which is a positive sign of efficient credit management and collection efforts. However, it is essential to continue monitoring this ratio to ensure that there are no underlying issues with the company's accounts receivable management.