Paychex Inc (PAYX)
Debt-to-assets ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 798,600 | 798,200 | 797,700 | 797,300 | 796,800 |
| Total assets | US$ in thousands | 10,383,100 | 10,546,400 | 9,635,200 | 9,227,200 | 8,550,700 |
| Debt-to-assets ratio | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 |
May 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $798,600K ÷ $10,383,100K
= 0.08
Paychex Inc's debt-to-assets ratio has remained relatively stable over the past five years, ranging from 0.08 to 0.09. This indicates that the company has a low level of debt relative to its total assets, suggesting a conservative capital structure. A lower debt-to-assets ratio typically signifies lower financial risk and greater financial stability. Paychex Inc's consistent ratio over the years reflects prudent financial management and a focus on maintaining a healthy balance between debt and assets.