Paychex Inc (PAYX)

Debt-to-equity 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-equity ratio		0.21	0.21	0.23	0.22	0.23	0.23	0.25	0.25	0.26	0.24	0.26	0.26	0.27	0.27	0.28	0.29	0.29	0.29	0.31	0.32

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 shown a relatively stable trend over the past couple of years, ranging between 0.21 to 0.32. This ratio indicates the proportion of the company's financing that comes from debt compared to equity. A lower ratio typically suggests that the company is relying more on equity financing rather than debt, which can be viewed positively as it signifies lower financial risk and less financial leverage.

In the case of Paychex Inc, the ratios have been consistently below 0.5, indicating a conservative approach to capital structure management. The slight upward trend over recent periods may suggest a gradual increase in debt levels relative to equity, but it remains at a moderate level compared to industry standards. This stable and relatively low debt-to-equity ratio implies that the company has a solid financial position with a healthy balance between debt and equity financing, which can be favorable for long-term sustainability and growth.