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

Paychex (Paychex) ROA % : 12.98% (As of May. 2024)


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

What is Paychex ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Paychex's annualized Net Income for the quarter that ended in May. 2024 was $1,520 Mil. Paychex's average Total Assets over the quarter that ended in May. 2024 was $11,704 Mil. Therefore, Paychex's annualized ROA % for the quarter that ended in May. 2024 was 12.98%.

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

PAYX' s ROA % Range Over the Past 10 Years
Min: 10.51   Med: 12.61   Max: 16.15
Current: 14.52

During the past 13 years, Paychex's highest ROA % was 16.15%. The lowest was 10.51%. And the median was 12.61%.

PAYX's ROA % is ranked better than
91.09% of 1078 companies
in the Business Services industry
Industry Median: 3.41 vs PAYX: 14.52

Paychex ROA % Historical Data

The historical data trend for Paychex's ROA % 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 ROA % Chart

Paychex Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.75 12.35 14.77 15.43 16.15

Paychex Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
ROA % 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 13.25 14.74 12.95 15.91 12.98

Competitive Comparison of Paychex's ROA %

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

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

* The bar in red indicates where Paychex's ROA % falls into.



Paychex ROA % Calculation

Paychex's annualized ROA % for the fiscal year that ended in May. 2024 is calculated as:

ROA %=Net Income (A: May. 2024 )/( (Total Assets (A: May. 2023 )+Total Assets (A: May. 2024 ))/ count )
=1690.4/( (10546.4+10383.1)/ 2 )
=1690.4/10464.75
=16.15 %

Paychex's annualized ROA % for the quarter that ended in May. 2024 is calculated as:

ROA %=Net Income (Q: May. 2024 )/( (Total Assets (Q: Feb. 2024 )+Total Assets (Q: May. 2024 ))/ count )
=1519.6/( (13023.9+10383.1)/ 2 )
=1519.6/11703.5
=12.98 %

* 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 ROA %, the net income of the last fiscal year and the average total assets 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. ROA % is displayed in the 30-year financial page.


Paychex  (NAS:PAYX) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: May. 2024 )
=Net Income/Total Assets
=1519.6/11703.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1519.6 / 5180.4)*(5180.4 / 11703.5)
=Net Margin %*Asset Turnover
=29.33 %*0.4426
=12.98 %

Note: The Net Income data used here is four times the quarterly (May. 2024) net income data. The Revenue data used here is four times the quarterly (May. 2024) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Paychex ROA % Related Terms

Thank you for viewing the detailed overview of Paychex's ROA % 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

Paychex Wins 2024 BIG Innovation Award

By Business Wire 01-11-2024

Q4 2022 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2023 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2020 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2021 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2022 Paychex Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Paychex Inc Annual Shareholders Meeting 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