Paychex Inc (PAYX)
Financial leverage ratio
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,564,100 | 11,221,600 | 10,554,700 | 10,489,100 | 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 |
| Total stockholders’ equity | US$ in thousands | 4,128,000 | 4,116,600 | 3,925,700 | 3,850,400 | 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 |
| Financial leverage ratio | 4.01 | 2.73 | 2.69 | 2.72 | 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 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,564,100K ÷ $4,128,000K
= 4.01
The financial leverage ratio of Paychex Inc. exhibits fluctuations over the analyzed periods, reflecting variations in the company's use of debt relative to equity. From August 31, 2020, to May 31, 2021, the ratio remained relatively stable, fluctuating between approximately 2.98 and 3.25, indicating a consistent level of debt usage in relation to equity.
Beginning in August 2021, the ratio maintained a steady range around 3.00, with minor fluctuations through late 2022, reaching a low of approximately 2.87 on November 30, 2022, and rising again to about 3.12 by February 28, 2023. This suggests a period of relatively stable financial leverage with slight upward and downward movements.
The ratio increased notably from May 31, 2023, reaching a peak of approximately 3.42 on November 30, 2023, indicating a temporary increase in debt levels or a decrease in equity, thereby amplifying financial leverage. This upward trend continued with a further rise to approximately 3.48 on February 29, 2024.
Subsequently, the ratio declined to roughly 2.73 by May 31, 2024, signaling a reduction in leverage, possibly due to debt repayment or equity accumulation. A phase of relative stability followed, with the ratio oscillating around the 2.7 level through August, November 2024, and into early 2025.
Most notably, a significant increase occurred again by May 31, 2025, with the ratio jumping to approximately 4.01, indicating a substantial shift toward higher leverage, likely driven by increased debt levels or decreased equity.
Overall, the data suggests that Paychex Inc. maintains a leverage ratio generally above 2.7 and around or above 3.0 during most periods, implying a consistent use of debt financing in its capital structure. The ratio's recent upward trend towards 4.0 indicates periods of intensified leverage, which could be associated with strategic initiatives, acquisitions, or other capital structure adjustments. The variations emphasize the company's flexible use of leverage relative to its equity base, reflective of its risk management strategies and financial policy over time.