Paychex Inc Financials
Paychex Inc (PAYX) reported $6.5B in revenue for fiscal year 2026, up 16.9% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Growth is increasingly debt-financed while gross economics improve but overhead and interest dilute profit.
Goodwill rose to$4.5B in FY2025 while long-term debt reached$4.5B , a balance-sheet reset that shifted the business toward borrowed financing. By FY2026, return on equity recovered to47.1% even as net margin fell to27.0% , implying leverage and a larger asset base—not cleaner operating profitability—helped sustain equity returns.
Cash conversion is stronger than reported earnings alone suggest: FY2026 operating cash flow was
Revenue expanded
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Paychex Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Paychex Inc has an operating margin of 38.6%, meaning the company retains $39 of operating profit per $100 of revenue. This strong profitability earns a score of 98/100, reflecting efficient cost management and pricing power. This is down from 39.6% the prior year.
Paychex Inc's revenue surged 16.9% year-over-year to $6.5B, reflecting rapid business expansion. This strong growth earns a score of 68/100.
Paychex Inc has a moderate D/E ratio of 1.22. This balance of debt and equity financing earns a leverage score of 43/100.
Paychex Inc's current ratio of 1.26 indicates adequate short-term liquidity, earning a score of 31/100. The company can meet its near-term obligations, though with limited headroom.
Paychex Inc converts 35.6% of revenue into free cash flow ($2.3B). This strong cash generation earns a score of 96/100.
Paychex Inc earns a strong 47.1% return on equity (ROE), meaning it generates $47 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 90/100. This is up from 40.2% the prior year.
Paychex Inc scores 3.30, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($43.6B) relative to total liabilities ($12.4B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Paychex Inc passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Paychex Inc generates $1.45 in operating cash flow ($2.6B OCF vs $1.8B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Paychex Inc earns $9.32 in operating income for every $1 of interest expense ($2.5B vs $269.5M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Paychex Inc generated $6.5B in revenue in fiscal year 2026. This represents an increase of 16.9% from the prior year.
Paychex Inc's EBITDA was $3.0B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 22.2% from the prior year.
Paychex Inc reported $1.8B in net income in fiscal year 2026. This represents an increase of 6.2% from the prior year.
Paychex Inc earned $4.89 per diluted share (EPS) in fiscal year 2026. This represents an increase of 6.8% from the prior year.
Cash & Balance Sheet
Paychex Inc generated $2.3B in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 35.8% from the prior year.
Paychex Inc held $1.1B in cash against $4.6B in long-term debt as of fiscal year 2026.
Paychex Inc paid $4.43 per share in dividends in fiscal year 2026. This represents an increase of 10.2% from the prior year.
Margins & Returns
Paychex Inc's gross margin was 74.3% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 1.9 percentage points from the prior year.
Paychex Inc's operating margin was 38.6% in fiscal year 2026, reflecting core business profitability. This is down 1.1 percentage points from the prior year.
Paychex Inc's net profit margin was 27.0% in fiscal year 2026, showing the share of revenue converted to profit. This is down 2.7 percentage points from the prior year.
Paychex Inc's ROE was 47.1% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 7.0 percentage points from the prior year.
Capital Allocation
Paychex Inc spent $611.0M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 484.7% from the prior year.
Paychex Inc invested $234.9M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 22.5% from the prior year.
Not reported for fiscal year 2026.
PAYX Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $6.5B+16.9% | $5.6B+5.6% | $5.3B+5.4% | $5.0B+8.6% | $4.6B+13.7% | $4.1B+0.4% | $4.0B+7.1% | $3.8B+11.7% | $3.4B+7.1% | $3.2B+6.8% | $3.0B+7.7% | $2.7B+8.8% | $2.5B+8.3% | $2.3B+4.3% | $2.2B |
| Cost of Revenue | $1.7B+8.7% | $1.5B+4.1% | $1.5B+1.8% | $1.5B+7.1% | $1.4B+6.7% | $1.3B-0.7% | $1.3B+8.7% | $1.2B+15.7% | $1.0B | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | $4.8B+20.0% | $4.0B+6.1% | $3.8B+6.9% | $3.6B+9.2% | $3.3B+16.9% | $2.8B+0.9% | $2.8B+6.4% | $2.6B+10.0% | $2.4B | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $2.3B+27.6% | $1.8B+12.2% | $1.6B+6.8% | $1.5B+7.5% | $1.4B+6.8% | $1.3B+2.0% | $1.3B+6.2% | $1.2B+14.6% | $1.1B+9.0% | $979.7M+3.3% | $948.2M+8.0% | $878.0M+9.2% | $803.7M+7.1% | $750.1M+6.3% | $705.8M |
| Operating Income | $2.5B+13.7% | $2.2B+1.5% | $2.2B+6.9% | $2.0B+10.5% | $1.8B+26.0% | $1.5B0.0% | $1.5B+6.5% | $1.4B+6.2% | $1.3B+3.0% | $1.3B+9.4% | $1.1B+8.8% | $1.1B+7.2% | $982.7M+8.6% | $904.8M+6.0% | $853.9M |
| Interest Expense | $269.5M+155.7% | $105.4M+182.6% | $37.3M+1.6% | $36.7M+0.3% | $36.6M+2.2% | $35.8M-7.7% | $38.8M+120.5% | $17.6M+351.3% | $3.9M+56.0% | $2.5M+127.3% | $1.1M+57.1% | $700K-36.4% | $1.1M | N/A | N/A |
| Income Tax | $550.8M+6.2% | $518.6M-1.7% | $527.6M+7.5% | $490.9M+13.7% | $431.8M+28.2% | $336.7M-0.7% | $339.0M+1.6% | $333.6M+9.0% | $306.0M-29.3% | $432.8M+9.8% | $394.3M+2.4% | $385.1M+6.8% | $360.6M+5.3% | $342.4M+9.6% | $312.3M |
| Net Income | $1.8B+6.2% | $1.7B-2.0% | $1.7B+8.5% | $1.6B+11.8% | $1.4B+26.9% | $1.1B-0.1% | $1.1B+6.2% | $1.0B+4.1% | $994.1M+20.3% | $826.3M+9.2% | $756.8M+12.1% | $674.9M+7.6% | $627.5M+10.3% | $569.0M+3.8% | $548.0M |
| EPS (Diluted) | $4.89+6.8% | $4.58-1.9% | $4.67+8.6% | $4.30+12.0% | $3.84+26.7% | $3.03-0.3% | $3.04+6.3% | $2.86+4.0% | $2.75+20.6% | $2.28+9.1% | $2.09+13.0% | $1.85+8.2% | $1.71+9.6% | $1.56+3.3% | $1.51 |
Not reported in any period shown, so not listed: R&D Expenses.
PAYX Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $16.2B-2.4% | $16.6B+59.5% | $10.4B-1.5% | $10.5B+9.5% | $9.6B+4.4% | $9.2B+7.9% | $8.6B-1.4% | $8.7B+9.6% | $7.9B+15.8% | $6.8B+6.1% | $6.4B-0.4% | $6.5B+1.5% | $6.4B+3.3% | $6.2B-4.9% | $6.5B |
| Current Assets | $8.6B-3.4% | $8.9B+23.0% | $7.3B-3.7% | $7.5B+14.4% | $6.6B+6.7% | $6.2B+12.9% | $5.5B-3.8% | $5.7B-3.7% | $5.9B+11.8% | $5.3B+8.4% | $4.9B-4.4% | $5.1B+1.7% | $5.0B+3.5% | $4.8B-4.8% | $5.1B |
| Cash & Equivalents | $1.1B-33.2% | $1.6B+10.9% | $1.5B+20.2% | $1.2B+230.3% | $370.0M-62.8% | $995.2M+9.9% | $905.2M+34.4% | $673.6M+88.1% | $358.2M+94.0% | $184.6M+40.4% | $131.5M-22.6% | $170.0M+11.5% | $152.5M+42.1% | $107.3M-1.4% | $108.8M |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $176.6M+18.2% | $149.4M+12.0% | $133.4M-6.3% | $142.4M |
| Goodwill | $4.5B+0.3% | $4.5B+139.8% | $1.9B+2.7% | $1.8B+0.1% | $1.8B+0.6% | $1.8B+1.7% | $1.8B+0.5% | $1.8B+119.0% | $814.0M+23.9% | $657.1M0.0% | $657.1M+17.0% | $561.5M+3.9% | $540.3M+1.2% | $533.9M+3.2% | $517.4M |
| Total Liabilities | $12.4B0.0% | $12.4B+88.9% | $6.6B-6.7% | $7.1B+7.7% | $6.5B+4.3% | $6.3B+8.8% | $5.8B-4.7% | $6.1B+9.0% | $5.6B+13.9% | $4.9B+7.7% | $4.5B-3.3% | $4.7B+1.9% | $4.6B+4.6% | $4.4B-10.0% | $4.9B |
| Current Liabilities | $6.8B-1.7% | $7.0B+31.0% | $5.3B-8.5% | $5.8B+10.2% | $5.3B+6.7% | $4.9B+11.5% | $4.4B-8.6% | $4.8B-8.5% | $5.3B+12.1% | $4.7B+8.2% | $4.4B-4.5% | $4.6B+3.0% | $4.4B+4.0% | $4.3B-10.1% | $4.7B |
| Long-Term Debt | $4.6B+0.2% | $4.5B+469.5% | $798.6M+0.1% | $798.2M+0.1% | $797.7M+0.1% | $797.3M+0.1% | $796.8M+0.1% | $796.4M | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $3.7B-9.5% | $4.1B+8.6% | $3.8B+8.8% | $3.5B+13.2% | $3.1B+4.7% | $2.9B+6.0% | $2.8B+6.2% | $2.6B+11.1% | $2.4B+5.8% | $2.2B+16.5% | $1.9B+7.1% | $1.8B+0.5% | $1.8B+0.2% | $1.8B+10.5% | $1.6B |
| Retained Earnings | $1.8B-20.7% | $2.3B+2.9% | $2.2B+9.4% | $2.0B+21.2% | $1.7B+15.5% | $1.4B+1.0% | $1.4B+1.6% | $1.4B+11.6% | $1.3B+40.0% | $901.7M-2.6% | $926.2M+3.6% | $894.3M-6.6% | $957.5M-12.0% | $1.1B+8.6% | $1.0B |
Not reported in any period shown, so not listed: Inventory.
PAYX Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $2.6B+34.5% | $1.9B+0.2% | $1.9B+11.2% | $1.7B+7.3% | $1.6B+26.1% | $1.3B-12.5% | $1.4B+13.3% | $1.3B-0.4% | $1.3B+32.9% | $960.4M-5.7% | $1.0B+13.7% | $895.2M+1.6% | $880.9M+30.4% | $675.3M-4.4% | $706.6M |
| Capital Expenditures | $234.9M+22.5% | $191.8M+18.8% | $161.4M+12.9% | $143.0M+6.9% | $133.8M+13.0% | $118.4M-6.8% | $127.0M+2.6% | $123.8M-19.6% | $154.0M+63.3% | $94.3M-3.5% | $97.7M-5.0% | $102.8M+22.2% | $84.1M-14.8% | $98.7M+10.2% | $89.6M |
| Free Cash Flow | $2.3B+35.8% | $1.7B-1.6% | $1.7B+11.1% | $1.6B+7.4% | $1.5B+27.5% | $1.1B-13.1% | $1.3B+14.5% | $1.1B+2.3% | $1.1B+29.6% | $866.1M-5.9% | $920.5M+16.2% | $792.4M-0.6% | $796.8M+38.2% | $576.6M-6.5% | $617.0M |
| Investing Cash Flow | -$1.2B+65.7% | -$3.4B-1186.6% | -$260.9M-223.2% | $211.7M+114.1% | -$1.5B-226.8% | -$460.6M-159.7% | $771.9M+147.4% | -$1.6B-263.1% | $998.5M+250.8% | -$662.2M-949.4% | -$63.1M | N/A | -$316.1M-274.0% | $181.7M+114.6% | -$1.2B |
| Financing Cash Flow | -$2.7B-215.7% | $2.3B+222.3% | -$1.9B-163.5% | -$711.4M+27.4% | -$979.3M-53.9% | -$636.4M+57.2% | -$1.5B-47.6% | -$1.0B-138.0% | -$423.8M+12.2% | -$482.7M+51.4% | -$993.6M | N/A | -$519.6M+39.5% | -$858.5M-262.7% | $527.5M |
| Dividends Paid | $1.6B+9.7% | $1.4B+10.1% | $1.3B+11.9% | $1.2B+17.5% | $999.6M+10.0% | $908.7M+2.2% | $889.4M+7.6% | $826.8M+11.8% | $739.7M+11.7% | $662.3M+9.2% | $606.5M+9.9% | $551.8M+8.1% | $510.6M+7.1% | $476.7M+3.5% | $460.5M |
| Share Buybacks | $611.0M+484.7% | $104.5M-38.2% | $169.2M | $0-100.0% | $145.2M-6.7% | $155.7M-9.4% | $171.9M+202.1% | $56.9M-60.2% | $143.1M-13.9% | $166.2M+54.0% | $107.9M-40.8% | $182.4M-27.0% | $249.7M | $0 | $0 |
PAYX Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 74.3%+1.9pp | 72.4%+0.4pp | 72.0%+1.0pp | 71.0%+0.4pp | 70.6%+1.9pp | 68.7%+0.4pp | 68.3%-0.5pp | 68.8%-1.1pp | 69.9% | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | 38.6%-1.1pp | 39.6%-1.6pp | 41.2%+0.6pp | 40.6%+0.7pp | 39.9%+3.9pp | 36.0%-0.1pp | 36.1%-0.2pp | 36.4%-1.9pp | 38.2%-1.5pp | 39.8%+0.9pp | 38.8%+0.4pp | 38.5%-0.6pp | 39.0%+0.1pp | 38.9%+0.6pp | 38.3% |
| Net Margin | 27.0%-2.7pp | 29.7%-2.3pp | 32.0%+0.9pp | 31.1%+0.9pp | 30.2%+3.1pp | 27.1%-0.1pp | 27.2%-0.2pp | 27.4%-2.0pp | 29.4%+3.2pp | 26.2%+0.6pp | 25.6%+1.0pp | 24.6%-0.3pp | 24.9%+0.4pp | 24.5%-0.1pp | 24.6% |
| Return on Equity | 47.1%+7.0pp | 40.2%-4.3pp | 44.5%-0.1pp | 44.6%-0.6pp | 45.1%+7.9pp | 37.2%-2.2pp | 39.5%0.0pp | 39.5%-2.7pp | 42.2%+5.1pp | 37.1%-2.5pp | 39.6%+1.8pp | 37.8%+2.5pp | 35.3%+3.2pp | 32.1%-2.1pp | 34.2% |
| Return on Assets | 10.9%+0.9pp | 10.0%-6.3pp | 16.3%+1.5pp | 14.8%+0.3pp | 14.5%+2.6pp | 11.9%-0.9pp | 12.8%+0.9pp | 11.9%-0.6pp | 12.6%+0.5pp | 12.1%+0.3pp | 11.8%+1.3pp | 10.4%+0.6pp | 9.8%+0.6pp | 9.2%+0.8pp | 8.5% |
| Current Ratio | 1.260.0x | 1.28-0.1x | 1.37+0.1x | 1.300.0x | 1.250.0x | 1.250.0x | 1.23+0.1x | 1.17+0.1x | 1.110.0x | 1.120.0x | 1.110.0x | 1.110.0x | 1.130.0x | 1.13+0.1x | 1.07 |
| Debt-to-Equity | 1.22+0.1x | 1.10+0.9x | 0.210.0x | 0.230.0x | 0.260.0x | 0.270.0x | 0.290.0x | 0.30-2.1x | 2.36+0.2x | 2.19-0.2x | 2.37-0.3x | 2.620.0x | 2.58+0.1x | 2.48-0.6x | 3.04 |
| FCF Margin | 35.6%+5.0pp | 30.7%-2.2pp | 32.9%+1.7pp | 31.2%-0.4pp | 31.6%+3.4pp | 28.1%-4.4pp | 32.5%+2.1pp | 30.4%-2.8pp | 33.2%+5.8pp | 27.5%-3.7pp | 31.2%+2.3pp | 28.9%-2.7pp | 31.6%+6.8pp | 24.8%-2.9pp | 27.7% |
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Where Paychex Inc Ranks
Frequently Asked Questions
What is Paychex Inc's annual revenue?
Paychex Inc (PAYX) reported $6.5B in total revenue for fiscal year 2026. This represents a 16.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Paychex Inc's revenue growing?
Paychex Inc (PAYX) revenue grew by 16.9% year-over-year, from $5.6B to $6.5B in fiscal year 2026.
Is Paychex Inc profitable?
Yes, Paychex Inc (PAYX) reported a net income of $1.8B in fiscal year 2026, with a net profit margin of 27.0%.
What is Paychex Inc's EBITDA?
Paychex Inc (PAYX) had EBITDA of $3.0B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Paychex Inc have?
As of fiscal year 2026, Paychex Inc (PAYX) had $1.1B in cash and equivalents against $4.6B in long-term debt.
What is Paychex Inc's gross margin?
Paychex Inc (PAYX) had a gross margin of 74.3% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Paychex Inc's operating margin?
Paychex Inc (PAYX) had an operating margin of 38.6% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Paychex Inc's net profit margin?
Paychex Inc (PAYX) had a net profit margin of 27.0% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
Does Paychex Inc pay dividends?
Yes, Paychex Inc (PAYX) paid $4.43 per share in dividends during fiscal year 2026.
What is Paychex Inc's return on equity (ROE)?
Paychex Inc (PAYX) has a return on equity of 47.1% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Paychex Inc's free cash flow?
Paychex Inc (PAYX) generated $2.3B in free cash flow during fiscal year 2026. This represents a 35.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Paychex Inc's operating cash flow?
Paychex Inc (PAYX) generated $2.6B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Paychex Inc's total assets?
Paychex Inc (PAYX) had $16.2B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Paychex Inc's capital expenditures?
Paychex Inc (PAYX) invested $234.9M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
What is Paychex Inc's current ratio?
Paychex Inc (PAYX) had a current ratio of 1.26 as of fiscal year 2026, which is considered adequate.
What is Paychex Inc's debt-to-equity ratio?
Paychex Inc (PAYX) had a debt-to-equity ratio of 1.22 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Paychex Inc's return on assets (ROA)?
Paychex Inc (PAYX) had a return on assets of 10.9% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Paychex Inc's Altman Z-Score?
Paychex Inc (PAYX) has an Altman Z-Score of 3.30, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Paychex Inc's Piotroski F-Score?
Paychex Inc (PAYX) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Paychex Inc's earnings high quality?
Paychex Inc (PAYX) has an earnings quality ratio of 1.45x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Paychex Inc cover its interest payments?
Paychex Inc (PAYX) has an interest coverage ratio of 9.32x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Paychex Inc?
Paychex Inc (PAYX) scores 71 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.