Paychex Inc (PAYX)
Current ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,916,500 | 7,251,500 | 7,528,100 | 6,581,600 | 6,169,500 |
| Total current liabilities | US$ in thousands | 6,956,300 | 5,309,100 | 5,805,400 | 5,269,200 | 4,938,200 |
| Current ratio | 1.28 | 1.37 | 1.30 | 1.25 | 1.25 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,916,500K ÷ $6,956,300K
= 1.28
The current ratio of Paychex Inc. demonstrates a generally stable liquidity position over the period from May 31, 2021, to May 31, 2025. Specifically, the ratio remained steady at 1.25 for the years ending in 2021 and 2022, indicating consistent capacity to meet short-term liabilities during this period. A modest increase was observed in 2023, with the ratio rising to 1.30, suggesting a slight improvement in liquidity or increased current assets relative to current liabilities. The ratio continued to improve in 2024, reaching 1.37, which indicates an even greater buffer for covering short-term obligations. However, in 2025, the ratio experienced a marginal decline to 1.28, yet it remained within a stable range above 1.25. Overall, the trend reflects a prudent liquidity management strategy with a tendency toward increased liquidity capacity, although the ratios remain relatively stable year over year, indicating robustness in Paychex Inc.'s ability to satisfy current liabilities.