Paychex Inc (PAYX)
Working capital 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 current assets | US$ in thousands | 7,251,500 | 9,886,400 | 8,923,700 | 9,088,500 | 7,528,100 | 7,595,200 | 6,198,200 | 6,085,400 | 6,581,600 | 7,237,300 | 6,632,400 | 6,317,300 | 6,169,500 | 6,622,200 | 5,592,400 | 5,340,200 | 5,464,600 | 6,389,400 | 5,627,900 | 5,555,900 |
| Total current liabilities | US$ in thousands | 5,309,100 | 8,000,800 | 7,254,400 | 7,343,500 | 5,805,400 | 5,958,100 | 4,753,900 | 4,702,200 | 5,269,200 | 5,687,900 | 5,221,900 | 4,957,900 | 4,938,200 | 5,356,000 | 4,380,000 | 4,263,100 | 4,426,900 | 5,389,700 | 4,823,900 | 4,823,500 |
| Working capital turnover | 2.72 | 2.76 | 3.09 | 2.92 | 2.91 | 3.01 | 3.34 | 3.42 | 3.51 | 2.90 | 3.07 | 3.10 | 3.29 | 3.11 | 3.28 | 3.70 | 3.89 | 4.11 | 5.02 | 5.33 |
May 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,278,300K ÷ ($7,251,500K – $5,309,100K)
= 2.72
The working capital turnover ratio for Paychex Inc has been fluctuating over the past few quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales. A higher ratio indicates that the company is making effective use of its resources.
Looking at the trend over the past few quarters, we can see that there have been fluctuations in the working capital turnover ratio. The ratio ranged from a low of 2.72 to a high of 5.33. This suggests varying levels of efficiency in managing working capital across different periods.
In general, the company's working capital turnover ratio has been relatively healthy, staying above 2.5 consistently. This indicates that Paychex Inc is efficient in using its working capital to generate revenue.
It is important to monitor the working capital turnover ratio over time to assess the company's operational efficiency and financial health. The fluctuations in the ratio may be influenced by changes in the company's sales, inventory management, or accounts receivable and payable practices.