Paychex, Inc. (PAYX) FY2025 Annual Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2024-06-01 to 2025-05-31

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Paychex, Inc. cash flow reconciliation, Jun 1, 2024 through May 31, 2025One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Net income → Net cash from operating activities: $1,657,300,000.00Amortization of deferred contract costs → Operating adjustments reconciliation: $236,500,000.00Depreciation and amortization → Operating adjustments reconciliation: $209,500,000.00Stock-based compensation costs → Operating adjustments reconciliation: $111,800,000.00Accounts payable and other current liabilities → Operating adjustments reconciliation: $42,300,000.00Provision for credit losses → Operating adjustments reconciliation: $24,200,000.00Amortization of premiums and discounts on AFS securities, net → Operating adjustments reconciliation: $23,400,000.00Net change in other long-term assets and liabilities → Operating adjustments reconciliation: $21,900,000.00Net realized losses on disposal of assets → Operating adjustments reconciliation: $3,700,000.00Net realized losses on sales of AFS securities → Operating adjustments reconciliation: $400,000.00Operating adjustments reconciliation → Net cash from operating activities: $243,600,000.00Operating adjustments reconciliation → Deferred costs: $246,500,000.00Operating adjustments reconciliation → Accounts receivable and PEO unbilled receivables, net: $130,700,000.00Operating adjustments reconciliation → Premium paid on cash flow hedges: $19,200,000.00Operating adjustments reconciliation → Benefit from deferred income taxes: $15,800,000.00Operating adjustments reconciliation → Prepaid expenses and other current assets: $12,000,000.00Operating adjustments reconciliation → Interest receivable: $3,800,000.00Operating adjustments reconciliation → Net change in operating lease right-of-use assets and liabilities: $2,100,000.00Proceeds from issuance of corporate bonds → financing reconciliation: $4,180,900,000.00Activity related to equity-based plans → financing reconciliation: $3,800,000.00financing reconciliation → Net cash from financing activities: $2,293,200,000.00financing reconciliation → Dividends paid: $1,448,500,000.00financing reconciliation → Net change in client fund obligations: $290,700,000.00financing reconciliation → Repurchases of common shares: $104,500,000.00financing reconciliation → Debt issuance costs: $47,800,000.00Net cash used in investing activities → investing reconciliation: $3,356,800,000.00Proceeds from sales and maturities of AFS securities → investing reconciliation: $14,292,500,000.00investing reconciliation → Purchases of AFS securities: $14,302,900,000.00investing reconciliation → Acquisition of businesses, net of cash acquired: $2,967,500,000.00investing reconciliation → Purchases of property and equipment: $191,800,000.00investing reconciliation → Net change in purchased receivables: $157,300,000.00investing reconciliation → Purchases of other assets: $29,800,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $1,897,000,000.00Net cash from operating activities → Cash sources and uses: $1,900,900,000.00Net cash from financing activities → Cash sources and uses: $2,293,200,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $2,734,300,000.00Cash sources and uses → Net cash used in investing activities: $3,356,800,000.00Net income: $1,657,300,000.00Net income+$1.66 BDepreciation and amortization: $209,500,000.00Depreciation & amortization+$209.50 MAmortization of premiums and discounts on AFS securities, net: $23,400,000.00Investment discount & premium+$23.40 MNet realized losses on disposal of assets: $3,700,000.00Asset sale gain & loss+$3.70 MAmortization of deferred contract costs: $236,500,000.00Contract cost amortization+$236.50 MStock-based compensation costs: $111,800,000.00Stock-based compensation+$111.80 MNet realized losses on sales of AFS securities: $400,000.00AFS securities gain & loss+$400.00 KBenefit from deferred income taxes: -$15,800,000.00Deferred income taxes−$15.80 MPremium paid on cash flow hedges: -$19,200,000.00Premium paid on cash flow hedges−$19.20 MProvision for credit losses: $24,200,000.00Credit loss provision+$24.20 MInterest receivable: -$3,800,000.00Interest receivable−$3.80 MAccounts receivable and PEO unbilled receivables, net: -$130,700,000.00Accounts receivable−$130.70 MPrepaid expenses and other current assets: -$12,000,000.00Prepaid & other assets−$12.00 MAccounts payable and other current liabilities: $42,300,000.00Payables & accrued liabilities+$42.30 MDeferred costs: -$246,500,000.00Deferred costs−$246.50 MNet change in other long-term assets and liabilities: $21,900,000.00Other noncurrent items+$21.90 MNet change in operating lease right-of-use assets and liabilities: -$2,100,000.00Operating lease, net−$2.10 MNet cash from operating activities: $1,900,900,000.00Operating cash+$1.90 BOperating adjustments reconciliation: $673,700,000.00Net change in client fund obligations: -$290,700,000.00Client fund obligations, net−$290.70 MNet proceeds from short-term borrowings: $0.00Proceeds from issuance of corporate bonds: $4,180,900,000.00Warrants issued+$4.18 BDividends paid: -$1,448,500,000.00Common dividends paid−$1.45 BDebt issuance costs: -$47,800,000.00Debt issuance costs−$47.80 MRepurchases of common shares: -$104,500,000.00Common stock repurchases−$104.50 MContingent consideration paid for acquisitions: $0.00Activity related to equity-based plans: $3,800,000.00Equity plan activity+$3.80 MNet cash from financing activities: $2,293,200,000.00Financing cash+$2.29 Bfinancing reconciliation: $4,184,700,000.00Purchases of AFS securities: -$14,302,900,000.00AFS securities purchases−$14.30 BNet change in purchased receivables: -$157,300,000.00Short-term receivables, net−$157.30 MProceeds from sales and maturities of AFS securities: $14,292,500,000.00AFS securities proceeds+$14.29 BProceeds from sales of property and equipment: $0.00Purchases of property and equipment: -$191,800,000.00PP&E purchases−$191.80 MAcquisition of businesses, net of cash acquired: -$2,967,500,000.00Acquisitions, net of cash−$2.97 BPurchases of other assets: -$29,800,000.00Other capital spending−$29.80 MNet cash used in investing activities: -$3,356,800,000.00. Cash required to fund net payments.Investing cash−$3.36 Binvesting reconciliation: $17,649,300,000.00Cash sources and uses: $6,091,100,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $1,897,000,000.00Beginning cash$1.90 BEnding cash: Cash, cash equivalents, and restricted cash: $2,734,300,000.00Ending cash$2.73 BCASH RECONCILIATIONOperatingflowsFinancingflowsInvestingflowsFree cash flow$1.71 BOperating cash − cash spent on PP&ECash flow / Net income1.15×Operating cash flow ÷ net incomeNet cash change+$837.30 MEnding cash − beginning cash
Chart details

Paychex, Inc. cash flow reconciliation, Jun 1, 2024 through May 31, 2025

Cash flows for Jun 1, 2024 through May 31, 2025. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: May 31, 2024. Ending cash: May 31, 2025. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on May 31, 2024
1,897,000,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
1,900,900,000 US dollars. Net cash provided.
Net income
1,657,300,000 US dollars
Depreciation and amortization
209,500,000 US dollars
Amortization of premiums and discounts on AFS securities, net
23,400,000 US dollars
Net realized losses on disposal of assets
3,700,000 US dollars
Amortization of deferred contract costs
236,500,000 US dollars
Stock-based compensation costs
111,800,000 US dollars
Net realized losses on sales of AFS securities
400,000 US dollars
Benefit from deferred income taxes
negative 15,800,000 US dollars
Premium paid on cash flow hedges
negative 19,200,000 US dollars
Provision for credit losses
24,200,000 US dollars
Interest receivable
negative 3,800,000 US dollars
Accounts receivable and PEO unbilled receivables, net
negative 130,700,000 US dollars
Prepaid expenses and other current assets
negative 12,000,000 US dollars
Accounts payable and other current liabilities
42,300,000 US dollars
Deferred costs
negative 246,500,000 US dollars
Net change in other long-term assets and liabilities
21,900,000 US dollars
Net change in operating lease right-of-use assets and liabilities
negative 2,100,000 US dollars
Investing activities
negative 3,356,800,000 US dollars. Net cash used.
Purchases of AFS securities
negative 14,302,900,000 US dollars
Net change in purchased receivables
negative 157,300,000 US dollars
Proceeds from sales and maturities of AFS securities
14,292,500,000 US dollars
Proceeds from sales of property and equipment
0 US dollars
Purchases of property and equipment
negative 191,800,000 US dollars
Acquisition of businesses, net of cash acquired
negative 2,967,500,000 US dollars
Purchases of other assets
negative 29,800,000 US dollars
Financing activities
2,293,200,000 US dollars. Net cash provided.
Net change in client fund obligations
negative 290,700,000 US dollars
Net proceeds from short-term borrowings
0 US dollars
Proceeds from issuance of corporate bonds
4,180,900,000 US dollars
Dividends paid
negative 1,448,500,000 US dollars
Debt issuance costs
negative 47,800,000 US dollars
Repurchases of common shares
negative 104,500,000 US dollars
Contingent consideration paid for acquisitions
0 US dollars
Activity related to equity-based plans
3,800,000 US dollars
Operating adjustment reconciliation
673,700,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
4,184,700,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
17,649,300,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
0 US dollars
Ending cash on May 31, 2025
2,734,300,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
6,091,100,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
837,300,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
1.15×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
1,900,900,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
191,800,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
1,709,100,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income enters operating cash directly in the reconciliation. The adjustment junction contributes the remaining $243.60M after reconciling the other positive and negative adjustments. These connections depict an accounting reconciliation, not traced cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 1,900,900,000 US dollars minus 191,800,000 US dollars equals 1,709,100,000 US dollars.
Paychex, Inc. (PAYX) FY2025 Annual Statement of Cash Flows Sankey chart
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