Paychex Inc (PAYX)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 3,801,000 | 3,493,200 | 3,085,200 | 2,948,000 | 2,781,400 |
| Debt-to-equity ratio | 0.21 | 0.23 | 0.26 | 0.27 | 0.29 |
May 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $798,600K ÷ $3,801,000K
= 0.21
The debt-to-equity ratio of Paychex Inc has been showing a decreasing trend over the past five years. In May 2020, the ratio was at its highest point of 0.29, indicating a higher level of debt relative to equity. However, this ratio has gradually decreased to 0.21 in May 2024. A decreasing debt-to-equity ratio suggests that the company has been relying less on debt financing and shifting towards a healthier capital structure with a higher proportion of equity. This may indicate improved financial stability and reduced financial risk for Paychex Inc over the years.