Paychex Inc (PAYX)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,571,700 | 5,439,500 | 5,369,800 | 5,310,800 | 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 |
| Receivables | US$ in thousands | 1,975,000 | 1,865,300 | 1,879,500 | 1,702,900 | 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 |
| Receivables turnover | 2.82 | 2.92 | 2.86 | 3.12 | 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 |
May 31, 2025 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,571,700K ÷ $1,975,000K
= 2.82
The receivables turnover ratio for Paychex Inc. exhibits notable fluctuations over the period from August 2020 to May 2025. Starting at 4.65 on August 31, 2020, the ratio declined progressively over the following months, reaching a low of approximately 3.12 in November 2023 and August 2024. This indicates a trend toward longer collection periods during this interval.
Throughout the analyzed period, there are periodic minor recoveries, such as increases to 3.73 on February 28, 2022, and 3.51 on May 31, 2023, suggesting occasional improvements in receivables collection efficiency. However, the overall pattern demonstrates a downward trajectory, with the latest ratio recorded at 2.82 on May 31, 2025.
This declining trend implies that Paychex Inc. is experiencing longer average collection periods over time, which may reflect increased challenges in receivables management or changes in credit terms. The reduction from an initial high indicates a deterioration in collection efficiency, potentially impacting liquidity and cash flow management. Continued monitoring of this ratio is advisable to determine if the trend persists or if strategic adjustments improve receivables turnover in future periods.