Paychex Inc (PAYX)
Total asset 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 |
| Total assets | US$ in thousands | 10,383,100 | 13,023,900 | 12,052,100 | 12,200,000 | 10,546,400 | 10,603,600 | 9,214,300 | 9,125,900 | 9,635,200 | 10,283,700 | 9,688,100 | 9,367,300 | 9,227,200 | 9,665,900 | 8,615,400 | 8,376,900 | 8,550,700 | 9,466,900 | 8,701,700 | 8,638,200 |
| Total asset turnover | 0.51 | 0.40 | 0.43 | 0.42 | 0.47 | 0.46 | 0.52 | 0.52 | 0.48 | 0.44 | 0.45 | 0.45 | 0.44 | 0.41 | 0.46 | 0.48 | 0.47 | 0.43 | 0.46 | 0.45 |
May 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $5,278,300K ÷ $10,383,100K
= 0.51
Paychex Inc's total asset turnover has fluctuated over the past few quarters, with values ranging from 0.40 to 0.52. The total asset turnover ratio measures the efficiency with which the company is utilizing its assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of assets.
In Paychex Inc's case, the ratio has generally been in the range of 0.40 to 0.52, indicating that the company is generating less revenue per dollar of assets compared to some previous periods. This could suggest either an increase in total assets without a proportional increase in revenue or a decrease in revenue relative to assets.
It is important for Paychex Inc to closely monitor and analyze the factors impacting its total asset turnover ratio to ensure efficient asset utilization and revenue generation. Further investigation into the company's operational efficiency and revenue generation strategies may be warranted to address any potential challenges highlighted by the total asset turnover ratio.