Paychex Inc (PAYX)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 798,600 | 798,500 | 798,400 | 798,300 | 798,200 | 798,100 | 797,900 | 797,800 | 797,700 | 797,600 | 797,500 | 797,400 | 797,300 | 797,200 | 797,000 | 796,900 | 796,800 | 796,700 | 796,600 | 796,500 |
| 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 |
| Debt-to-capital ratio | 0.17 | 0.18 | 0.18 | 0.18 | 0.19 | 0.19 | 0.20 | 0.20 | 0.21 | 0.20 | 0.20 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.22 | 0.22 | 0.24 | 0.24 |
May 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $798,600K ÷ ($798,600K + $3,801,000K)
= 0.17
The debt-to-capital ratio of Paychex Inc has been relatively stable over the past eight quarters, ranging from 0.17 to 0.24. This ratio indicates the proportion of debt in the company's capital structure, with a lower ratio typically suggesting a lower financial risk for the company.
The trend shows a slight increase in the debt-to-capital ratio from 0.17 in May 2020 to 0.24 in November 2019. This upward trend could indicate that the company has been relying more on debt financing compared to its equity financing over the period analyzed.
Overall, Paychex Inc's debt-to-capital ratio has remained within a reasonable range, suggesting a balanced capital structure with an appropriate mix of debt and equity financing. It is essential for the company to monitor and manage this ratio effectively to ensure financial stability and flexibility in the long run.