Paychex Inc (PAYX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 905,200 | 780,000 | 600,600 | 586,400 |
| Short-term investments | US$ in thousands | 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 | 27,200 | 73,800 | 34,400 | 40,900 |
| 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 |
| Cash ratio | 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 | 0.21 | 0.16 | 0.13 | 0.13 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,468,900K
+ $33,900K)
÷ $5,309,100K
= 0.28
The cash ratio of Paychex Inc has displayed some fluctuations over the time periods represented. The ratio measures a company's ability to cover its short-term liabilities using only cash and cash equivalents.
The trend in Paychex Inc's cash ratio shows some variability, fluctuating between 0.13 and 0.28. The ratio has generally stayed within a range of 0.16 to 0.28 over the most recent periods.
A higher cash ratio indicates that the company has more cash available to cover its short-term obligations, which can be a sign of financial strength and liquidity. Conversely, a lower cash ratio may suggest that the company may struggle to meet its short-term liabilities with available cash.
It is essential to consider the industry norms and the company's specific business circumstances when evaluating the cash ratio in isolation. Additionally, it is advisable to analyze other liquidity ratios and financial metrics to gain a comprehensive understanding of Paychex Inc's financial position.