Paychex Inc (PAYX)
Operating return on assets (Operating ROA)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,207,700 | 2,174,100 | 2,033,100 | 1,840,000 | 1,460,700 |
| Total assets | US$ in thousands | 16,564,100 | 10,383,100 | 10,546,400 | 9,635,200 | 9,227,200 |
| Operating ROA | 13.33% | 20.94% | 19.28% | 19.10% | 15.83% |
May 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $2,207,700K ÷ $16,564,100K
= 13.33%
The operating return on assets (ROA) for Paychex Inc. demonstrates a generally upward trend from May 31, 2021, through May 31, 2024, followed by a notable decline in May 2025. Specifically, the operating ROA increased from 15.83% in 2021 to 19.10% in 2022 and further to 19.28% in 2023. This steady improvement suggests enhanced operational efficiency and profitability relative to the company's total assets during this period. The upward trajectory continued into 2024, with the operating ROA reaching 20.94%, indicating continued gains in operational performance and asset utilization.
However, a decline in operating ROA is observed in 2025, dropping to 13.33%. This decrease signifies a reduction in operating efficiency, potentially attributable to increased expenses, decreased revenues, or strategic shifts impacting asset utilization. Overall, the historical data reflect a period of growth in operational profitability over the preceding three years, with a significant downturn in the most recent year, which warrants further investigation into the underlying causes affecting the company's operational asset efficiency.