Paychex Inc (PAYX)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,657,300 | 1,740,000 | 1,719,300 | 1,698,600 | 1,690,400 | 1,660,900 | 1,629,700 | 1,597,300 | 1,557,300 | 1,503,300 | 1,466,600 | 1,438,400 | 1,392,800 | 1,359,400 | 1,279,200 | 1,219,500 | 1,097,500 | 1,055,200 | 1,059,200 | 1,045,500 |
| 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 |
| ROA | 10.01% | 15.51% | 16.29% | 16.19% | 16.28% | 12.75% | 13.52% | 13.09% | 14.77% | 14.18% | 15.92% | 15.76% | 14.46% | 13.22% | 13.20% | 13.02% | 11.89% | 10.92% | 12.29% | 12.48% |
May 31, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,657,300K ÷ $16,564,100K
= 10.01%
The analysis of Paychex Inc.'s return on assets (ROA) over the specified period reveals notable fluctuations and trends. Initially, the ROA was relatively stable around the 12.2% to 12.5% range from August 2020 through November 2020. A decline commenced in early 2021, with the ROA decreasing to approximately 10.92% by February 2021. This downward trend persisted into May 2021 before a rebound occurred, with ROA increasing to 13.02% in August 2021 and maintaining an upward trajectory through late 2022.
From August 2021 through November 2022, the ROA demonstrated consistent improvement, reaching a peak of approximately 15.92% in November 2022. This period indicates enhanced asset utilization and profitability efficiency. Subsequently, a slight decline was observed by February 2023, with the ROA decreasing to around 14.18%, followed by a modest recovery to 14.77% in May 2023.
A significant decrease ensued by August 2023, when the ROA dropped to approximately 13.09%, with a minor upward correction to 13.52% in November 2023. Early 2024 data show a further decline to 12.75% in February, but this was followed by a sharp upward movement from May onward, reaching as high as 16.28% in May 2024 and maintaining levels above 16% through November 2024. The latest data indicate a slight dip to 15.51% in February 2025, accompanied by an unusual low of 10.01% in May 2025, suggesting potential operational challenges or one-time factors impacting asset profitability.
Overall, the ROA exhibits cyclical behavior with periods of growth correlating with improved operational conditions, followed by declines that could be attributed to external or internal factors. The recent upward trend points to improved efficiency, although the recent steep decline in May 2025 warrants further investigation into underlying causes.