Paychex Inc (PAYX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,801,000 | 3,493,200 | 3,085,200 | 2,948,000 | 2,781,400 |
| ROE | 44.47% | 44.58% | 45.14% | 37.23% | 39.48% |
May 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,690,400K ÷ $3,801,000K
= 44.47%
Paychex Inc has shown consistently strong return on equity (ROE) figures over the past five years, with ROE ranging from 37.23% to 45.14%. The highest ROE was recorded in May 31, 2022, at 45.14%, showcasing the company's ability to generate significant returns on shareholders' equity. Although there was a slight dip in ROE in the following year, the company quickly rebounded and maintained ROE above 40% in subsequent years. This trend indicates that Paychex Inc effectively utilizes its equity to generate profits for its shareholders. Overall, the company's consistent high ROE demonstrates its efficiency in generating profits relative to its shareholders' equity, reflecting positively on its financial performance and management.