Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Paychex's 10-Year RORE % for the quarter that ended in Feb. 2023 was 40.45%.
The industry rank for Paychex's 10-Year RORE % or its related term are showing as below:
PAYX's 10-Year RORE % is ranked better than 88.7% of 584
companies
in the Business Services industry
Industry Median: 8.10
vs PAYX: 40.45
Paychex 10-Year RORE % Historical Data
The historical data trend for Paychex's 10-Year RORE % 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
10-Year RORE %
33.68
37.11
34.99
30.78
39.14
Paychex Quarterly Data
May18
Aug18
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
10-Year RORE %
37.65
39.14
39.93
40.13
40.45
Competitive Comparison
For the Staffing & Employment Services subindustry, Paychex's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % Distribution
For the Business Services industry and Industrials sector, Paychex's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Paychex's 10-Year RORE % falls in comparison to its industry or sector. The grey bar indicates the 10-Year RORE %'s extreme value range as defined by GuruFocus.
Paychex 10-Year RORE % Calculation
Paychex's 10-Year RORE % for the quarter that ended in Feb. 2023 is calculated as:
* 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Feb. 2023 and 10-year before.
Paychex (NAS:PAYX) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Paychex 10-Year RORE % Related Terms
Thank you for viewing the detailed overview of Paychex's 10-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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