Paychex Inc (PAYX)
Total asset 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 |
| Total assets | US$ in thousands | 16,564,100 | 10,383,100 | 10,546,400 | 9,635,200 | 9,227,200 |
| Total asset turnover | 0.34 | 0.51 | 0.47 | 0.48 | 0.44 |
May 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,571,700K ÷ $16,564,100K
= 0.34
The total asset turnover ratio for Paychex Inc has experienced fluctuations over the period from May 31, 2021, to May 31, 2025. Specifically, the ratio increased from 0.44 in 2021 to 0.48 in 2022, indicating a modest improvement in the company's efficiency in generating revenues from its assets. This upward trend continued slightly in 2023, reaching 0.47, suggesting stability in asset utilization. The ratio then rose further to 0.51 in 2024, reflecting a notable increase in asset efficiency during this period. However, by May 31, 2025, the ratio declined sharply to 0.34, signaling a significant decrease in asset turnover and implying that the company is generating less revenue per dollar of assets compared to previous years. Overall, the trend demonstrates initial improvements in asset utilization followed by a substantial decline in the most recent period.