Paychex Inc (PAYX)
Quick 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 | 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 |
| Receivables | US$ in thousands | 1,975,000 | 1,865,300 | 1,879,500 | 1,702,900 | 1,625,300 | 1,702,100 | 1,650,800 | 1,574,600 | 1,426,200 | 1,415,000 | 1,391,600 | 1,373,300 | 1,318,200 | 1,204,700 | 1,371,500 | 1,084,500 | 1,053,600 | 1,105,900 | 991,800 | 855,900 |
| 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 |
| Quick ratio | 0.52 | 0.60 | 0.59 | 0.60 | 0.59 | 0.43 | 0.42 | 0.44 | 0.52 | 0.50 | 0.56 | 0.55 | 0.48 | 0.45 | 0.46 | 0.45 | 0.42 | 0.39 | 0.42 | 0.40 |
May 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,628,600K
+ $—K
+ $1,975,000K)
÷ $6,956,300K
= 0.52
The Paychex Inc. quick ratio exhibits a generally stable trend with fluctuations over the specified period. Starting at 0.40 on August 31, 2020, the ratio increased gradually, reaching a peak of 0.60 in February 2025. Throughout this timeframe, the ratio demonstrates a consistent upward trajectory from the initial value, reflecting incremental improvements in liquidity.
The data indicates periods of steady growth, particularly noticeable from late 2021 onward, with notable increases reaching over 0.55 by August 2022 and surpassing 0.60 in early 2025. The ratio remained within a relatively narrow band of approximately 0.40 to 0.60, suggesting a stable liquidity position that is neither excessively conservative nor excessively strained.
In particular, the fluctuations from August 2023 onward, with values like 0.44, 0.42, and then rising again to 0.60 and beyond, indicate responsive adjustments possibly in response to operational or market conditions. The overall trend signifies that Paychex Inc. has maintained a cautious but improving liquidity position, with the quick ratio consistently below 1.0 throughout the period, which is typical for service-oriented companies where immediate liquidity needs are moderate.
The stabilization and gradual rise in the quick ratio imply effective liquidity management strategies, enabling the company to meet short-term obligations with readily available assets. The data suggests a prudent approach to liquidity, with the company enhancing its capacity to cover current liabilities using its most liquid assets over time.