Paychex Inc (PAYX)
Total asset 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 |
| Total assets | US$ in thousands | 10,383,100 | 10,546,400 | 9,635,200 | 9,227,200 | 8,550,700 |
| Total asset turnover | 0.51 | 0.47 | 0.48 | 0.44 | 0.47 |
May 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,278,300K ÷ $10,383,100K
= 0.51
Total asset turnover is a critical financial ratio that measures a company's efficiency in generating revenue from its assets. Paychex Inc's total asset turnover has shown fluctuations over the past five years, ranging from 0.44 to 0.51.
A higher total asset turnover indicates that the company is more effective in using its assets to generate revenue. In Paychex Inc's case, the total asset turnover has remained within a relatively narrow range, suggesting consistent efficiency in asset utilization.
However, the slight fluctuations in the ratio over the years may indicate changes in the company's business operations or asset management strategies. It is essential to monitor the trend of total asset turnover over time to assess the company's ongoing efficiency in generating revenue from its assets and to evaluate the effectiveness of its operational strategies.