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Paychex (Paychex) Interest Coverage : 50.72 (As of May. 2024)


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What is Paychex Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Paychex's Operating Income for the three months ended in May. 2024 was $482 Mil. Paychex's Interest Expense for the three months ended in May. 2024 was $-10 Mil. Paychex's interest coverage for the quarter that ended in May. 2024 was 50.72. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Paychex's Interest Coverage or its related term are showing as below:

PAYX' s Interest Coverage Range Over the Past 10 Years
Min: 37.64   Med: 77.91   Max: 1505.14
Current: 78.21


PAYX's Interest Coverage is ranked better than
74.88% of 804 companies
in the Business Services industry
Industry Median: 13.405 vs PAYX: 78.21

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Paychex Interest Coverage Historical Data

The historical data trend for Paychex's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Paychex Interest Coverage Chart

Paychex Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.64 40.80 50.27 55.40 58.29

Paychex Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 48.22 57.05 59.55 65.64 50.72

Competitive Comparison of Paychex's Interest Coverage

For the Staffing & Employment Services subindustry, Paychex's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Paychex's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Paychex's Interest Coverage falls into.



Paychex Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Paychex's Interest Coverage for the fiscal year that ended in May. 2024 is calculated as

Here, for the fiscal year that ended in May. 2024, Paychex's Interest Expense was $-37 Mil. Its Operating Income was $2,174 Mil. And its Long-Term Debt & Capital Lease Obligation was $848 Mil.

Interest Coverage=-1* Operating Income (A: May. 2024 )/Interest Expense (A: May. 2024 )
=-1*2174.1/-37.3
=58.29

Paychex's Interest Coverage for the quarter that ended in May. 2024 is calculated as

Here, for the three months ended in May. 2024, Paychex's Interest Expense was $-10 Mil. Its Operating Income was $482 Mil. And its Long-Term Debt & Capital Lease Obligation was $848 Mil.

Interest Coverage=-1* Operating Income (Q: May. 2024 )/Interest Expense (Q: May. 2024 )
=-1*481.8/-9.5
=50.72

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Paychex  (NAS:PAYX) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Paychex Interest Coverage Related Terms

Thank you for viewing the detailed overview of Paychex's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Paychex (Paychex) Business Description

Traded in Other Exchanges
Address
911 Panorama Trail South, Rochester, NY, USA, 14625-2396
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.
Executives
Flaschen David J S director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Christopher C Simmons officer: VP, Controller & Treasurer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Michael E Gioja officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Efrain Rivera officer: Sr. Vice President, CFO 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Martin Mucci officer: Sr. Vice President 911 PANORAMA TRAIL S, ROCHESTER NY 14625
Joseph M Tucci director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Joseph M Velli director
Elizabeth Roaldsen officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Karen E. Saunders-mcclendon officer: VP, Chief Human Resources Offi 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Theresa M. Payton director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
John B Gibson officer: Sr. VP, Service CONVERGYS CORPORATION, 201 EAST FOURTH STREET, CINCINNATI OH 45202
Mark Anthony Bottini officer: Sr. VP of Sales 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Robert L. Schrader officer: VP/Controller 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Stephanie L Schaeffer officer: Chief Legal Officer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Joseph Doody director CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701

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