Paychex (NAS:PAYX) Interest Coverage

: 67.99 (As of Feb. 2023)

View and export this data going back to 1983. Start your Free Trial

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 Feb. 2023 was $612 Mil. Paychex's Interest Expense for the three months ended in Feb. 2023 was $-9 Mil. Paychex's interest coverage for the quarter that ended in Feb. 2023 was 67.99. 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: 416.36 Max: 9048
Current: 54.23

PAYX's Interest Coverage is ranked better than
68.91% of 788 companies
in the Business Services industry
Industry Median: 15.77 vs PAYX: 54.23

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.

* Premium members only.

Paychex Annual Data

Trend

May13

May14

May15

May16

May17

May18

May19

May20

May21

May22

Interest Coverage

331.15

77.91

37.64

40.80

50.27

Paychex Quarterly Data
	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23
Interest Coverage																62.53	43.30	54.46	51.34	67.99

Competitive Comparison

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.

Annual Data Quarterly Data

Paychex Interest Coverage Distribution

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 in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

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.

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. 2022 is calculated as

Here, for the fiscal year that ended in May. 2022, Paychex's Interest Expense was $-37 Mil. Its Operating Income was $1,840 Mil. And its Long-Term Debt & Capital Lease Obligation was $873 Mil.

Interest Coverage	=	-1	*	Operating Income (A: May. 2022 )	/	Interest Expense (A: May. 2022 )
	=	-1	*	1840	/	-36.6
	=	50.27

Paychex's Interest Coverage for the quarter that ended in Feb. 2023 is calculated as

Here, for the three months ended in Feb. 2023, Paychex's Interest Expense was $-9 Mil. Its Operating Income was $612 Mil. And its Long-Term Debt & Capital Lease Obligation was $861 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Feb. 2023 )	/	Interest Expense (Q: Feb. 2023 )
	=	-1	*	611.9	/	-9
	=	67.99

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 (NAS:PAYX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Paychex Inc (NAS:PAYX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PAYX:Mexico PCX:Germany P1AY34:Brazil

Address

911 Panorama Trail South, Rochester, NY, USA, 14625-2396

Website

https://www.paychex.com

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 730,000 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

Kevin A Price	director	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Karen E. Saunders-mcclendon	officer: VP, Chief Human Resources Offi	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Robert L. Schrader	officer: VP/Controller	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Kara Wilson	director	C/O SUCCESSFACTORS, INC., 1500 FASHION ISLAND BLVD., SUITE 300, SAN MATEO CA 94404
Tom Bonadio	director	1021 HOWARD AVE, SAN CARLOS CA 94070
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
Kevin N Hill	officer: Vice President	50 WREN FIELD LN, PITTSFORD NY 114534
Michael E Gioja	officer: Sr. Vice President	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Rebecca F Bernson	officer: Sr. Vice President, Sales	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Efrain Rivera	officer: Sr. Vice President, CFO	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Laurie L. Zaucha	officer: Vice President	400 WILLOWBROOK OFFICE PARK, FAIRPORT NY 14450
Joseph Doody	director	CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701
Delbert M Humenik	officer: Sr. Vice President	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Jennifer R. Vossler	officer: VP/Controller	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625