Paychex Inc (PAYX)
Total asset 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 |
| Total assets | US$ in thousands | 16,564,100 | 11,221,600 | 10,554,700 | 10,489,100 | 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 |
| Total asset turnover | 0.34 | 0.48 | 0.51 | 0.51 | 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 |
May 31, 2025 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $5,571,700K ÷ $16,564,100K
= 0.34
The total asset turnover ratio for Paychex Inc. exhibits notable fluctuations over the period from August 2020 through May 2025. Initially, the ratio was relatively stable around 0.48 in August 2020 and showed a slight decline to 0.41 by February 28, 2021. This indicates a decrease in the efficiency of utilizing assets to generate revenue during that period.
From May 2021 onward, the ratio generally trended upward, reaching a peak of 0.52 in August and November 2022. This suggests improved operational efficiency, as the company was generating more revenue per dollar of assets employed during this timeframe. The ratio remained stable at approximately 0.52 through late 2022 before declining to 0.46 in February 2023 and slightly oscillating around 0.47 in mid-2023.
Subsequently, the ratio decreased further to 0.42 in August 2023 and to 0.43 in November 2023, indicating a reduction in asset utilization efficiency.
However, a significant reversal occurred in the near future, with the ratio increasing to 0.51 by May 2024 and maintaining this level through August and November 2024, reflecting renewed asset utilization effectiveness. Yet, this upward trend was interrupted by a decline to 0.48 in February 2025 and a sharp drop to 0.34 in May 2025, signaling a decline in the company’s ability to generate revenue from its assets in this later period.
Overall, the pattern of the total asset turnover ratio reflects periods of operational improvement and efficiency gains, punctuated by declines that may be related to variations in business operations, asset base management, or broader economic conditions affecting revenue generation. The recent decline in mid-2025 indicates a potential concern regarding asset efficiency that may warrant further investigation.