Paychex Inc (PAYX)
Operating return on assets (Operating ROA)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,174,100 | 2,033,100 | 1,840,000 | 1,460,700 | 1,460,500 |
| Total assets | US$ in thousands | 10,383,100 | 10,546,400 | 9,635,200 | 9,227,200 | 8,550,700 |
| Operating ROA | 20.94% | 19.28% | 19.10% | 15.83% | 17.08% |
May 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,174,100K ÷ $10,383,100K
= 20.94%
Paychex Inc's operating return on assets (operating ROA) has exhibited a positive trend over the past five years, increasing from 17.08% in 2020 to 20.94% in 2024. This indicates that the company has been effectively generating operating profits relative to its assets. The consistent improvement in operating ROA reflects a higher level of operational efficiency and effectiveness in utilizing its assets to generate income. It suggests that Paychex has been successful in managing its assets to generate operating income, which is a positive sign for investors and stakeholders. Overall, the trend in operating ROA for Paychex Inc demonstrates sustained financial performance and effective asset management over the five-year period.