Paychex Inc (PAYX)
Debt-to-equity ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,128,000 | 3,801,000 | 3,493,200 | 3,085,200 | 2,948,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
May 31, 2025 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $4,128,000K
= 0.00
The debt-to-equity ratio of Paychex Inc. as of the dates provided remains consistently at 0.00 across the fiscal years ending May 31, 2021 through May 31, 2025. This indicates that the company has maintained a capital structure entirely composed of equity without leveraging debt during this period. The persistent absence of debt suggests a conservative financing approach, emphasizing internal funding or equity financing rather than debt issuance. Such a financial structure minimizes financial risk associated with leverage, potentially enhancing stability during economic fluctuations. However, it might also limit the company's capacity for growth initiatives that typically benefit from debt financing, such as expansion or acquisitions. Overall, the zero debt-to-equity ratio reflects a debt-free balance sheet with exclusive reliance on equity capital.