GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Paychex Inc (NAS:PAYX) » Definitions » Return-on-Tangible-Equity

Paychex (Paychex) Return-on-Tangible-Equity : 89.82% (As of May. 2024)


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

What is Paychex Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Paychex's annualized net income for the quarter that ended in May. 2024 was $1,520 Mil. Paychex's average shareholder tangible equity for the quarter that ended in May. 2024 was $1,692 Mil. Therefore, Paychex's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2024 was 89.82%.

The historical rank and industry rank for Paychex's Return-on-Tangible-Equity or its related term are showing as below:

PAYX' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 56.53   Med: 109.14   Max: 200.11
Current: 108.28

During the past 13 years, Paychex's highest Return-on-Tangible-Equity was 200.11%. The lowest was 56.53%. And the median was 109.14%.

PAYX's Return-on-Tangible-Equity is ranked better than
86.31% of 1001 companies
in the Business Services industry
Industry Median: 11.8 vs PAYX: 108.28

Paychex Return-on-Tangible-Equity Historical Data

The historical data trend for Paychex's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart

Paychex Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 200.11 145.25 148.12 124.54 105.80

Paychex Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
Return-on-Tangible-Equity 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 98.60 112.51 106.49 128.63 89.82

Competitive Comparison of Paychex's Return-on-Tangible-Equity

For the Staffing & Employment Services subindustry, Paychex's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Paychex's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Paychex's Return-on-Tangible-Equity falls into.



Paychex Return-on-Tangible-Equity Calculation

Paychex's annualized Return-on-Tangible-Equity for the fiscal year that ended in May. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: May. 2024 )  (A: May. 2023 )(A: May. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: May. 2024 )  (A: May. 2023 )(A: May. 2024 )
=1690.4/( (1471.8+1723.8 )/ 2 )
=1690.4/1597.8
=105.80 %

Paychex's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: May. 2024 )  (Q: Feb. 2024 )(Q: May. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: May. 2024 )  (Q: Feb. 2024 )(Q: May. 2024 )
=1519.6/( (1659.9+1723.8)/ 2 )
=1519.6/1691.85
=89.82 %

* 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (May. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Paychex  (NAS:PAYX) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Paychex Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Paychex's Return-on-Tangible-Equity 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

Paychex (Paychex) Headlines

From GuruFocus

Q3 2022 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2019 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Paychex Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024

Paychex Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024

Q4 2022 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q2 2020 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Paychex Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024

Q3 2021 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2023 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024