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Paychex (Paychex) Sloan Ratio % : 0.52% (As of May. 2024)


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What is Paychex Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Paychex's Sloan Ratio for the quarter that ended in May. 2024 was 0.52%.

As of May. 2024, Paychex has a Sloan Ratio of 0.52%, indicating the company is in the safe zone and there is no funny business with accruals.


Paychex Sloan Ratio % Historical Data

The historical data trend for Paychex's Sloan Ratio % 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 Sloan Ratio % Chart

Paychex Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -13.04 3.23 13.58 -3.42 0.52

Paychex Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
Sloan Ratio % 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 -3.42 4.81 4.69 -1.25 0.52

Competitive Comparison of Paychex's Sloan Ratio %

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

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

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



Paychex Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Paychex's Sloan Ratio for the fiscal year that ended in May. 2024 is calculated as

Sloan Ratio=(Net Income (A: May. 2024 )-Cash Flow from Operations (A: May. 2024 )
-Cash Flow from Investing (A: May. 2024 ))/Total Assets (A: May. 2024 )
=(1690.4-1897.7
--260.9)/10383.1
=0.52%

Paychex's Sloan Ratio for the quarter that ended in May. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: May. 2024 )
=(1690.4-1897.7
--260.9)/10383.1
=0.52%

Paychex's Net Income for the trailing twelve months (TTM) ended in May. 2024 was 419.2 (Aug. 2023 ) + 392.7 (Nov. 2023 ) + 498.6 (Feb. 2024 ) + 379.9 (May. 2024 ) = $1,690 Mil.
Paychex's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2024 was 655.8 (Aug. 2023 ) + 348.5 (Nov. 2023 ) + 671.7 (Feb. 2024 ) + 221.7 (May. 2024 ) = $1,898 Mil.
Paychex's Cash Flow from Investing for the trailing twelve months (TTM) ended in May. 2024 was 24 (Aug. 2023 ) + -133.7 (Nov. 2023 ) + -8.1 (Feb. 2024 ) + -143.1 (May. 2024 ) = $-261 Mil.

* 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.


Paychex  (NAS:PAYX) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of May. 2024, Paychex has a Sloan Ratio of 0.52%, indicating the company is in the safe zone and there is no funny business with accruals.


Paychex Sloan Ratio % Related Terms

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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

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