Paychex Inc (PAYX)
Cash ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,676,500 | 1,468,900 | 1,222,000 | 370,000 | 995,200 |
| Short-term investments | US$ in thousands | 34,500 | 33,900 | 373,400 | 853,900 | 36,700 |
| Total current liabilities | US$ in thousands | 6,956,300 | 5,309,100 | 5,805,400 | 5,269,200 | 4,938,200 |
| Cash ratio | 0.25 | 0.28 | 0.27 | 0.23 | 0.21 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,676,500K
+ $34,500K)
÷ $6,956,300K
= 0.25
The cash ratio for Paychex Inc. demonstrates a generally positive trend over the observed period from May 31, 2021, to May 31, 2025. Specifically, the ratio increased from 0.21 in 2021 to 0.23 in 2022, reflecting a modest improvement in the company's liquidity position in terms of immediate cash availability relative to its current liabilities. This upward movement continued through 2023 and 2024, with the cash ratio reaching 0.27 and 0.28, respectively, indicating an enhanced capacity to cover short-term obligations solely with cash and cash equivalents. In 2025, the ratio slightly declined to 0.25, yet it remained higher than the levels recorded in 2021 and 2022. Overall, the trend suggests a gradual strengthening of the company's liquid assets position relative to its short-term liabilities, although the ratio remains below 1.0, indicating that cash and cash equivalents alone do not fully cover current liabilities.