Paychex Inc (PAYX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,628,600 | 1,563,800 | 1,202,100 | 1,459,600 | 1,468,900 | 1,693,600 | 1,363,100 | 1,645,900 | 1,222,000 | 1,316,900 | 1,096,500 | 1,184,200 | 370,000 | 267,500 | 636,200 | 1,102,000 | 995,200 | 787,000 | 693,500 | 835,700 |
| Short-term investments | US$ in thousands | — | 37,200 | 38,000 | 38,400 | 33,900 | 36,600 | 34,400 | 45,700 | 373,400 | 240,100 | 165,600 | 45,800 | 853,900 | 1,086,000 | 376,000 | 39,600 | 36,700 | 203,700 | 174,900 | 30,600 |
| Total current liabilities | US$ in thousands | 6,956,300 | 5,799,700 | 5,329,200 | 5,343,900 | 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 |
| Cash ratio | 0.23 | 0.28 | 0.23 | 0.28 | 0.28 | 0.22 | 0.19 | 0.23 | 0.27 | 0.26 | 0.27 | 0.26 | 0.23 | 0.24 | 0.19 | 0.23 | 0.21 | 0.18 | 0.20 | 0.20 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,628,600K
+ $—K)
÷ $6,956,300K
= 0.23
The analysis of Paychex Inc.'s cash ratio over the specified periods indicates a generally stable liquidity position with modest fluctuations. Throughout the observed timeframe from August 31, 2020, to May 31, 2025, the cash ratio ranged from a low of approximately 0.18 to a high of 0.28. The ratio demonstrates a slight upward trend during certain intervals, notably reaching peaks of 0.27 and 0.28 in November 2022, May 2024, and February 2025. Conversely, the ratio experienced dips, with the lowest values recorded at 0.18 in February 2021 and 0.19 in November 2023. Overall, the cash ratio remains below 0.3 throughout, implying that the company's cash holdings constitute a relatively small proportion of its current liabilities, which is typical for a service-oriented firm with steady cash flow management practices. The minor variances suggest consistent liquidity management without significant shifts in cash reserves during the analyzed periods.