Paychex Inc (PAYX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,383,100 | 13,023,900 | 12,052,100 | 12,200,000 | 10,546,400 | 10,603,600 | 9,214,300 | 9,125,900 | 9,635,200 | 10,283,700 | 9,688,100 | 9,367,300 | 9,227,200 | 9,665,900 | 8,615,400 | 8,376,900 | 8,550,700 | 9,466,900 | 8,701,700 | 8,638,200 |
| 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 |
| Financial leverage ratio | 2.73 | 3.48 | 3.42 | 3.40 | 3.02 | 3.12 | 2.87 | 2.91 | 3.12 | 3.13 | 3.11 | 3.08 | 3.13 | 3.25 | 2.98 | 3.01 | 3.07 | 3.43 | 3.39 | 3.43 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,383,100K ÷ $3,801,000K
= 2.73
The financial leverage ratio of Paychex Inc has shown some fluctuations over the past few quarters, ranging from a low of 2.73 to a high of 3.48. The ratio indicates the extent to which the company relies on debt to finance its operations and growth. Generally, a higher financial leverage ratio suggests higher financial risk as the company has a greater proportion of debt in its capital structure.
It is noteworthy that the financial leverage ratio has been fluctuating around the 3.00 level in recent quarters, indicating that Paychex has been maintaining a relatively high level of leverage. This suggests that the company has been utilizing debt financing to support its operations and potentially fund investments or acquisitions.
Investors and analysts closely monitor changes in the financial leverage ratio as it can impact the company's financial stability and cost of capital. It is important for Paychex to carefully manage its debt levels to ensure sustainable growth and profitability, while also being mindful of the risks associated with high leverage.
Overall, the financial leverage ratio trend of Paychex Inc suggests that the company has been actively using debt as part of its capital structure, and it will be important for stakeholders to continue monitoring any significant shifts in this ratio in future periods.