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PAYX · Nasdaq · United States · Services-Engineering, Accounting, Research, Management
In shortPAYCHEX INC is profitable, generates cash and carries moderate debt, with revenue growing (+16.9% last year).
Financial health
Strong
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 38.6% | 100/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 27.0% | 100/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 44.8% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | 23.1% | 100/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 1.26× | 38/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 1.22× | 43/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | 1.16× | 81/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | 9.32× | 74/100 |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 2.44 | 34/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 35.7% | 100/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 1.32× | 100/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 5 | 100/100 |
| Revenue growth volatility | 5.1% | 92/100 |
| Operating margin volatility | 1.0% | 100/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 9.2% | 68/100 |
|---|---|---|
| EPS growth, 3-year average | 4.4% | 47/100 |
Weight in the score: 10%
Fiscal year 2026 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 4,612 | 5,007 | 5,278 | 5,572 | 6,512 |
| Cost of revenue | 1,356 | 1,453 | 1,479 | 1,540 | 1,675 |
| Gross profit | 3,255 | 3,554 | 3,799 | 4,031 | 4,838 |
| Selling, general & admin | 1,415 | 1,521 | 1,625 | 1,824 | 2,327 |
| Operating income | 1,840 | 2,033 | 2,174 | 2,208 | 2,511 |
| Interest expense | 37 | 37 | 37 | 105 | 270 |
| Pre-tax income | 1,825 | 2,048 | 2,218 | 2,176 | 2,311 |
| Income tax | 432 | 491 | 528 | 519 | 551 |
| Net income | 1,393 | 1,557 | 1,690 | 1,657 | 1,760 |
| Diluted EPS | $3.84 | $4.30 | $4.67 | $4.58 | $4.89 |
| Diluted shares (millions) | 363 | 362 | 362 | 362 | 360 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 8 reported quarters (10-Q and 10-K filings), in USD millions. The fourth quarter is derived from the annual report.
The last 8 quarters of PAYCHEX INC are included in the Investor plan. Try free for 7 days →
2.44 Grey zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
7/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Aug 31, 2026 · Data updated Sep 24, 2026