Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Paychex's annualizedNet Income for the quarter that ended in Feb. 2024 was $1,994 Mil. Paychex's average total tangible assets for the quarter that ended in Feb. 2024 was $10,453 Mil. Therefore, Paychex's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2024 was 19.08%.
The historical rank and industry rank for Paychex's Return-on-Tangible-Asset or its related term are showing as below:
PAYX'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 11.03 Med: 15.29 Max: 19.34
Current: 17.26
During the past 13 years, Paychex's highest Return-on-Tangible-Asset was 19.34%. The lowest was 11.03%. And the median was 15.29%.
PAYX's Return-on-Tangible-Asset is ranked better than 90.3% of 1083
companies
in the Business Services industry
Industry Median: 4.2
vs PAYX: 17.26
Paychex Return-on-Tangible-Asset Historical Data
The historical data trend for Paychex's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Paychex's Return-on-Tangible-Asset
For the Staffing & Employment Services subindustry, Paychex's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paychex's Return-on-Tangible-Asset Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Paychex's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Paychex's Return-on-Tangible-Asset falls into.
Paychex Return-on-Tangible-Asset Calculation
Paychex's annualized Return-on-Tangible-Asset for the fiscal year that ended in May. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Feb. 2024) net income data.
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Paychex Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Paychex's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Paychex is a leading provider of payroll, human capital management, and insurance solutions servicing small and midsize clients primarily in the United States. The company, established in 1979, services over 740,000 clients and pays over 1 in 12 U.S. private-sector workers. Alongside its traditional payroll services, Paychex offers HCM solutions such as benefits administration and time and attendance software, as well as human resources outsourcing and insurance agency services.
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