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Paychex PAYX Return on invested capital

Return on invested capital at other companies

Automatic Data Processing, Inc. logo
Automatic Data Processing, Inc.ADP
66.6%-5.5pp
Asure Software logo
Asure SoftwareASUR
-5.7%-2.7pp
Barrett Business Services logo
Barrett Business ServicesBBSI
17.8%-6.6pp
Trinet Group logo
Trinet GroupTNET
116.3%-37.6pp
Insperity logo
InsperityNSP
-3.2%
Workday, Inc. logo
Workday, Inc.WDAY
8%+3.3pp

Other financials

Income statement

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Revenue$1.6B+12.5%
Gross profit$1.2B+15.0%
Operating income$604.7M+40.3%
Net income$420.6M+41.5%
EPS (diluted)$1.18+43.9%

Balance sheet

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Cash & equivalents$1.1B-33.2%
Total debt$4.6B-0.3%
Total equity$3.7B-9.5%
Total assets$16.2B-2.4%

Cash flow

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Operating cash flow$580.9M+69.0%
CapEx$65.9M+8.9%
Free cash flow$515.0M+81.8%

Valuation

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Market cap$41.56B-17.3%
Enterprise value$45.1B-15.3%
P/E23.6×-6.7×
P/S6.4×-2.6×

Profitability

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Gross margin74.3%+1.9pp
Operating margin38.6%-1.1pp
Net margin27%-2.7pp
FCF margin35.7%+5.0pp

Returns & leverage

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Return on equity44.8%+3.0pp
Debt / equity1.2×+0.1×
Current ratio1.3×0.0×

Where this comes from

Calculated from Paychex’s reported figures.

Based on trailing twelve months.

The source filing: Paychex’s 10-K, filed July 17, 2026. Open the filing →

Filed
Jul 17, 2026, 4:05 PM EDT
Fiscal year
FY2026
Accession
0001193125-26-307785

FAQ

What is Paychex's return on invested capital?
Paychex (PAYX) reported return on invested capital of 26.5% in Q1 2026.
How has Paychex's return on invested capital changed year-over-year?
Paychex's return on invested capital decreased by 18.3% year-over-year, from 32.5% to 26.5%.
What is the long-term trend for Paychex's return on invested capital?
Over 5 years (2021 to 2026), Paychex's return on invested capital has grown at a -13.4% compound annual growth rate (CAGR), from 54.4% to 26.5%.
What does return on invested capital mean?
Net operating profit after tax (operating income taxed at the effective rate) divided by average invested capital (debt plus equity minus cash). Measures the after-tax return on all capital put to work in the business, independent of capital structure.

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