Paychex Inc (PAYX)
Return on assets (ROA)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,690,400 | 1,557,300 | 1,392,800 | 1,097,500 | 1,098,100 |
| Total assets | US$ in thousands | 10,383,100 | 10,546,400 | 9,635,200 | 9,227,200 | 8,550,700 |
| ROA | 16.28% | 14.77% | 14.46% | 11.89% | 12.84% |
May 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,690,400K ÷ $10,383,100K
= 16.28%
Paychex Inc's return on assets (ROA) has shown a positive trend over the past five years, indicating the company's efficiency in generating profits relative to its total assets. The ROA has consistently increased from 12.84% in 2020 to 16.28% in 2024, reflecting an improvement in the company's ability to utilize its assets to generate earnings. This steady increase suggests that Paychex Inc has been successful in optimizing its asset utilization and generating higher returns for its shareholders. Overall, the trend in ROA demonstrates the company's effective management of resources and profitability over the past five years.