Paychex 10-Q: Financials for Nov 30, 2024
Ticker: PAYX · Form: 10-Q · Filed: Dec 19, 2024 · CIK: 723531
Sentiment: neutral
Topics: 10-Q, financials, receivables, investments
TL;DR
Paychex 10-Q filed: $1.07B receivables, solid investments. Looks good.
AI Summary
Paychex Inc. filed its 10-Q for the period ending November 30, 2024. The filing details financial performance and position, including trade accounts receivable of $1,073.5 million as of November 30, 2024, and accumulated other comprehensive income of $109.8 million as of May 31, 2024. The company also reported on its investments in U.S. Treasury and government securities and corporate debt securities.
Why It Matters
This filing provides investors with a snapshot of Paychex's financial health and operational performance for the recent quarter, influencing investment decisions.
Risk Assessment
Risk Level: low — The filing is a routine quarterly report and does not indicate any immediate or significant new risks.
Key Numbers
- $1,073.5M — Trade Accounts Receivable (As of November 30, 2024, indicating short-term assets.)
- $109.8M — Accumulated Other Comprehensive Income (As of May 31, 2024, reflecting unrealized gains/losses.)
- $16.11B — IRS Number (Company's IRS identification number.)
Key Players & Entities
- PAYCHEX INC (company) — Filer
- 2024-11-30 (date) — Reporting period end date
- 2024-12-19 (date) — Filing date
- 1,073.5 million (dollar_amount) — Trade Accounts Receivable as of 2024-11-30
- 109.8 million (dollar_amount) — Accumulated Other Comprehensive Income as of 2024-05-31
FAQ
What was Paychex's net sales revenue for the six months ended November 30, 2024?
The filing indicates net sales revenue for the six months ended November 30, 2024, but the specific dollar amount is not directly extractable from the provided text snippet.
What is the fair value of Paychex's corporate debt securities as of November 30, 2024?
The filing mentions corporate debt securities and fair value measurements for November 30, 2024, but the specific dollar amount is not provided in this snippet.
What was the change in Accumulated Net Unrealized Investment Gain/Loss from the prior year's comparable period?
The filing references Accumulated Net Unrealized Investment Gain/Loss for the period September 1, 2023, to November 30, 2023, but the specific change or value is not detailed here.
What is the balance of U.S. Treasury and government securities as of May 31, 2024?
The filing lists U.S. Treasury and government securities as of May 31, 2024, but the specific dollar amount is not present in the provided text.
What were the PEO and Insurance Solutions revenues for the six months ended November 30, 2023?
The filing references PEO and Insurance Solutions for the period June 1, 2023, to November 30, 2023, but the specific revenue figure is not extractable from this snippet.
Filing Stats: 4,445 words · 18 min read · ~15 pages · Grade level 7.5 · Accepted 2024-12-19 16:04:27
Key Financial Figures
- $0.01 — nge on which registered Common Stock, $0.01 par value PAYX Nasdaq Global Select
Filing Documents
- payx-20241130.htm (10-Q) — 3263KB
- payx-ex31_1.htm (EX-31.1) — 20KB
- payx-ex31_2.htm (EX-31.2) — 19KB
- payx-ex32_1.htm (EX-32.1) — 9KB
- payx-ex32_2.htm (EX-32.2) — 10KB
- 0000950170-24-138425.txt ( ) — 10784KB
- payx-20241130.xsd (EX-101.SCH) — 890KB
- payx-20241130_htm.xml (XML) — 2470KB
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION 1 Item 1.
Financial Statements (Unaudited)
Financial Statements (Unaudited) 1 Consolidated Statements of Income and Comprehensive Income 1 Consolidated Balance Sheets 2 Consolidated Statements of Stockholders' Equity 3 Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements 6 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.
Controls and Procedures
Controls and Procedures 30
OTHER INFORMATION
PART II. OTHER INFORMATION 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 5. Other Information 31 Item 6. Exhibits 31
Signatures
Signatures 32 Table of Contents
FI NAN CIAL INFORMATION
PART I. FI NAN CIAL INFORMATION
Financial Statements
Item 1. Financial Statements PAYCHEX, INC. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) In millions, except per share amounts For the three months ended For the six months ended November 30, November 30, 2024 2023 2024 2023 Revenue: Management Solutions $ 962.9 $ 930.7 $ 1,924.6 $ 1,886.2 PEO and Insurance Solutions 317.9 295.7 637.2 593.5 Total service revenue 1,280.8 1,226.4 2,561.8 2,479.7 Interest on funds held for clients 36.1 31.5 73.6 64.2 Total revenue 1,316.9 1,257.9 2,635.4 2,543.9 Expenses: Cost of service revenue 379.1 364.1 759.1 724.3 Selling, general and administrative expenses 399.7 387.6 791.5 777.1 Total expenses 778.8 751.7 1,550.6 1,501.4 Operating income 538.1 506.2 1,084.8 1,042.5 Other income, net 5.6 11.7 16.0 24.5 Income before income taxes 543.7 517.9 1,100.8 1,067.0 Income taxes 130.3 125.2 260.0 255.1 Net income $ 413.4 $ 392.7 $ 840.8 $ 811.9 Other comprehensive (loss)/income, net of tax ( 11.6 ) 15.9 53.2 ( 7.3 ) Comprehensive income $ 401.8 $ 408.6 $ 894.0 $ 804.6 Basic earnings per share $ 1.15 $ 1.09 $ 2.34 $ 2.25 Diluted earnings per share $ 1.14 $ 1.08 $ 2.32 $ 2.24 Weighted-average common shares outstanding 360.0 360.5 360.1 360.6 Weighted-average common shares outstanding, assuming dilution 361.7 362.1 361.8 362.4 See Notes to Consolidated Financial Statements. 1 Table of Contents PA YCHEX, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) In millions, except per share amounts November 30, May 31, 2024 2024 Assets Cash and cash equivalents $ 1,202.1 $ 1,468.9 Restricted cash 63.1 47.8 Corporate investments 38.0 33.9 Interest receivable 23.7 23.3 Accounts receivable, net of allowance for credit losses
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) November 30, 2024 Note A: Description of Business, Basis of Presentation, and Significant Accounting Policies Description of business: Paychex, Inc. and its wholly owned subsidiaries (collectively, the "Company" or "Paychex") is a leading provider of integrated human capital management ("HCM") solutions for human resources ("HR"), payroll, benefits, and insurance for small- to medium-sized businesses in the United States ("U.S.") and parts of Europe. The Company also has operations in India. Paychex, a Delaware corporation formed in 1979, reports as one segment. Basis of presentation: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to the Quarterly Report on Form 10-Q ("Form 10-Q") and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statement presentation. The consolidated financial statements include the consolidated accounts of the Company with all intercompany transactions eliminated. Certain disclosures are reported as zero balances due to rounding. In the opinion of management, the information furnished herein reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair statement of the results for the interim period. These consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related Notes to Consolidated Financial Statements presented in the Company's Annual Report on Form 10-K ("Form 10-K") for the fiscal year ended May 31, 2024 ("fiscal 2024"). Operating results and cash flows for the six months ended November 30, 2024 are not necessarily indicative of the results that may be expected for other interim periods or for the fiscal year ending May 31, 2025 (