Paychex Inc (PAYX)
Return on equity (ROE)
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 1,098,100 | 1,107,800 | 1,077,900 | 1,055,000 |
| Total stockholders’ equity | US$ in thousands | 3,801,000 | 3,747,100 | 3,524,400 | 3,587,800 | 3,493,200 | 3,401,100 | 3,205,300 | 3,137,400 | 3,085,200 | 3,286,000 | 3,119,800 | 3,043,500 | 2,948,000 | 2,976,400 | 2,889,700 | 2,778,600 | 2,781,400 | 2,759,800 | 2,569,400 | 2,519,300 |
| ROE | 44.47% | 44.32% | 46.24% | 44.52% | 44.58% | 44.20% | 45.76% | 45.85% | 45.14% | 41.37% | 41.00% | 40.07% | 37.23% | 35.45% | 36.65% | 37.63% | 39.48% | 40.14% | 41.95% | 41.88% |
May 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,690,400K ÷ $3,801,000K
= 44.47%
Paychex Inc has shown a consistently strong return on equity (ROE) over the past several quarters, ranging from 35.45% to 46.24%. ROE is a key financial ratio that measures a company's profitability by evaluating how effectively it is generating profits from shareholders' equity.
Between May 2024 and May 2020, Paychex Inc's ROE has generally trended upward, peaking at 46.24% in November 2023. This upward trend indicates that the company has been efficiently using its equity to generate profits for its shareholders.
The ROE percentages for Paychex Inc consistently exceed 30%, indicating that the company is effectively utilizing shareholders' equity to generate significant returns. Investors typically view a higher ROE favorably, as it suggests that the company is generating more profit with less shareholder investment.
Overall, Paychex Inc's strong and consistently high ROE indicates effective management of shareholder equity and a solid financial performance over the analyzed period.