Paychex Inc (PAYX)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,207,700 | 2,258,400 | 2,216,400 | 2,184,500 | 2,174,100 | 2,145,600 | 2,107,700 | 2,073,800 | 2,033,100 | 1,973,800 | 1,925,200 | 1,893,200 | 1,840,500 | 1,800,300 | 1,705,600 | 1,619,600 | 1,460,700 | 1,406,500 | 1,408,000 | 1,395,400 |
| Total assets | US$ in thousands | 16,564,100 | 11,221,600 | 10,554,700 | 10,489,100 | 10,383,100 | 13,023,900 | 12,052,100 | 12,200,000 | 10,546,400 | 10,603,600 | 9,214,300 | 9,125,900 | 9,635,200 | 10,283,700 | 9,688,100 | 9,367,300 | 9,227,200 | 9,665,900 | 8,615,400 | 8,376,900 |
| Operating ROA | 13.33% | 20.13% | 21.00% | 20.83% | 20.94% | 16.47% | 17.49% | 17.00% | 19.28% | 18.61% | 20.89% | 20.75% | 19.10% | 17.51% | 17.61% | 17.29% | 15.83% | 14.55% | 16.34% | 16.66% |
May 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,207,700K ÷ $16,564,100K
= 13.33%
The operating return on assets (Operating ROA) for Paychex Inc. has exhibited notable fluctuations over the observed period. Starting at 16.66% on August 31, 2020, the metric experienced a slight decline through November 30, 2020, settling at 16.34%. Subsequently, a more pronounced decrease was observed by February 28, 2021, with the Operating ROA dropping to 14.55%. This downward trend persisted into May 31, 2021, when it slightly recovered to 15.83%, and then continued its upward movement, reaching 17.29% by August 31, 2021, and further improving to 17.61% on November 30, 2021.
Throughout 2022, the Operating ROA demonstrated a strengthening trend, rising from 17.51% on February 28 to 19.10% on May 31, and reaching a peak of 20.89% on November 30. The trajectory continued with a moderate decline to 18.61% in February 2023, followed by a slight recovery to 19.28% in May 2023. However, this momentum was interrupted, as the Operating ROA decreased to 17.00% on August 31, 2023, then showed incremental increases to 17.49% in November 2023, and further to 16.47% in February 2024.
From late 2024 into the first half of 2025, the Operating ROA demonstrated significant improvement, reaching 20.94% on May 31, 2024, then stabilizing around 20.83% on August 31, 2024, and slightly ascending to 21.00% on November 30, 2024. A modest decline was noted in early 2025, with the figure registering at 20.13% on February 28, 2025, before a sharp decline to 13.33% in the subsequent period on May 31, 2025.
Overall, Paychex's Operating ROA has experienced periods of growth and contraction, reflecting fluctuations in operational efficiency and asset utilization. The increases in late 2022 and late 2024 suggest phases of improved operational performance, while the declines observed in early 2021 and mid-2023, as well as the notable drop in May 2025, indicate periods of reduced operating efficiency or external challenges impacting profitability relative to asset base.