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Paychex PAYX Interest coverage

Interest coverage at other companies

Automatic Data Processing, Inc. logo
Automatic Data Processing, Inc.ADP
13.5×+0.8×
Equifax logo
EquifaxEFX
5.3×+0.6×
ROP
Roper Technologies, Inc.ROP
6.3×-1.3×
Corpay logo
CorpayCPAY
5.2×+0.6×
PayPal Holdings, Inc. logo
PayPal Holdings, Inc.PYPL
13.4×-0.8×
Aon plc logo
Aon plcAON
5.8×+1.3×

Other financials

Income statement

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Revenue$1.8B+19.9%
Gross profit$1.4B+22.8%
Operating income$792.0M+14.5%
Net income$560.3M+7.9%
EPS (diluted)$1.56+9.1%

Balance sheet

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Cash & equivalents$1.7B+11.4%
Total debt$4.6B+434%
Total equity$4.0B-2.5%
Total assets$17.5B+56.1%

Cash flow

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Operating cash flow$812.5M+13.5%
CapEx$51.0M+4.7%
Free cash flow$761.5M+14.1%

Valuation

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Market cap$34.96B-38.4%
Enterprise value$37.83B-32.3%
P/E21.4×-11.3×
P/S5.5×-4.9×

Profitability

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Gross margin73.9%+1.9pp
Operating margin36.9%-4.6pp
Net margin25.8%-6.1pp

Returns & leverage

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Return on equity40.3%-4.0pp
Debt / equity1.1×+0.9×
Current ratio1.3×-0.1×

Where this comes from

Calculated from Paychex’s reported figures.

Based on trailing twelve months.

The official record: Paychex’s 10-Q, filed March 26, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Paychex's interest coverage?
Paychex (PAYX) reported interest coverage of 8.7× in Q4 2025.
How has Paychex's interest coverage changed year-over-year?
Paychex's interest coverage decreased by 82.6% year-over-year, from 50.1× to 8.7×.
What is the long-term trend for Paychex's interest coverage?
Over 3 years (2021 to 2025), Paychex's interest coverage has grown at a 9.5% compound annual growth rate (CAGR), from 155.9× to 204.6×.
What does interest coverage mean?
How many times the company's operating profit covers its interest bill.
How do you interpret interest coverage?
Higher is safer; below ~2× is a warning that earnings provide little cushion against the debt burden. Debt-free companies have no interest expense and the ratio is left blank.
How does interest coverage compare across companies?
Comparable across leveraged non-financials; less relevant for net-cash companies with negligible interest.