Paychex (LTS:0KGE) ROCE % : 42.67% (As of Nov. 2024)

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What is Paychex ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Paychex's annualized ROCE % for the quarter that ended in Nov. 2024 was 42.67%.

Paychex ROCE % Historical Data

The historical data trend for Paychex's ROCE % 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.

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Paychex ROCE % Chart

Paychex Annual Data

Trend

May15

May16

May17

May18

May19

May20

May21

May22

May23

May24

ROCE %

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37.11

34.95

43.01

45.79

45.96

Paychex Quarterly Data
	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24
ROCE %	Get a 7-Day Free Trial															43.62	54.50	39.72	44.36	42.67

Paychex ROCE % Calculation

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

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: May. 2024 )		(A: May. 2023 )		(A: May. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: May. 2024 )		(A: May. 2023 )		(A: May. 2024 )
	=	2255.3	/	( ( (10546.4 - 5805.4)	+	(10383.1 - 5309.1) )	/ 2 )
	=	2255.3	/	( (4741	+	5074)	/ 2 )
	=	2255.3	/	4907.5
	=	45.96 %

Paychex's ROCE % of for the quarter that ended in Nov. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Nov. 2024 )		(Q: Aug. 2024 )		(Q: Nov. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Nov. 2024 )		(Q: Aug. 2024 )		(Q: Nov. 2024 )
	=	2212.8	/	( ( (10489.1 - 5343.9)	+	(10554.7 - 5329.2) )	/ 2 )
	=	2212.8	/	( ( 5145.2	+	5225.5 )	/ 2 )
	=	2212.8	/	5185.35
	=	42.67 %

(1) Note: The EBIT data used here is four times the quarterly (Nov. 2024) EBIT data.

Paychex (LTS:0KGE) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Paychex ROCE % Related Terms

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Paychex Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Paychex Inc (LTS:0KGE) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

PAYX:USA PCX:Germany PCX:Germany PCX:Germany PAYX:Austria

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, founded in 1971, services over 745,000 clients and pays 1 in 12 US 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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