Paychex Inc Liquidation Value

Cash & Equivalents

$1.74B
As of 2026-02-28
Current Price: N/A

Key Metrics

Cash Liquidation Value

Cash minus Total Obligations
Cash: $1.74B
Total Obligations: -$12.55B
$-10.81B
Per share: $-30.17
Period: 2026-02-28

Liquid Liquidation Value

Cash + AR minus Total Obligations
Cash: $1.74B
AR: N/A
Total Obligations: -$12.55B
$-10.81B
Per share: $-30.17
Period: 2026-02-28
incomplete 1 component missing — treated as $0 in formula. Why?
  • Accounts Receivable: not reported in this period (annual-only)

Operating Liquidation Value

Cash + AR + Inventory minus Total Obligations
Cash: $1.74B
AR: N/A
Inventory: N/A
Total Obligations: -$12.55B
$-10.81B
Per share: $-30.17
Period: 2026-02-28
incomplete 2 components missing — treated as $0 in formula. Why?
  • Accounts Receivable: not reported in this period (annual-only)
  • Inventory: not reported

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Liquidation Ladder

MetricTotalPer Share
Cash Liquidation Value$-10.81B$-30.17
Liquid Liquidation Value$-10.81B$-30.17
Operating Liquidation Value$-10.81B$-30.17

Key Components (as of 2026-02-28)

Data as of 2026-02-28 from 10-Q filed 2026-03-26. View on SEC EDGAR →

Cash & Equivalents$1.74B
Accounts ReceivableN/A
InventoryN/A
Current Liabilities$7.88B
Long-term Debt (?)$4.55B
Op. Lease Liability (?)$59.30M
Finance Lease (?)N/A
Shares Outstanding358.3M

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Historical

PeriodCashARInventoryAPCurr LiabLT DebtOp LeaseFin Lease
2026-02-28$1.74BN/AN/A$132.40M$7.88B$4.55B$59.30MN/A
2025-11-30$1.49BN/AN/A$137.60M$7.04B$4.55B$66.60MN/A
2025-08-31$809.00MN/AN/A$120.60M$7.13B$4.55B$52.90MN/A
2025-05-31$1.63BN/AN/A$129.80M$6.96B$4.55B$55.50MN/A
2025-02-28$1.56BN/AN/A$118.70M$5.80B$799.00M$47.10MN/A
2024-11-30$1.20BN/AN/A$89.20M$5.33B$798.90M$45.70MN/A
2024-08-31$1.46BN/AN/A$80.90M$5.34B$798.70M$49.40MN/A
2024-05-31$1.47BN/AN/A$104.30M$5.31B$798.60M$49.00MN/A

Comments

SEC Filings

PeriodFormFiledLink
2026-02-28 10-Q 2026-03-26 View
2025-11-30 10-Q 2025-12-22 View
2025-08-31 10-Q 2025-09-30 View
2025-05-31 10-K 2025-07-11 View
2025-02-28 10-Q 2025-03-26 View
2024-11-30 10-Q 2024-12-19 View
2024-08-31 10-Q 2024-10-01 View
2024-05-31 10-K 2024-07-11 View

AI Insights

AI Insight·Generated 2026-05-04

PAYCHEX INC (PAYX) 10-Q for the quarter ended February 28, 2026 shows a deeply negative liquidation value, consistent with MFFAIS-reported CLV/LLV/OLV of approximately -$10.75B. The structure is typical for a payroll/HCM services company: the balance sheet is dominated by client fund assets and matching client fund obligations, a large goodwill and intangible asset stack from the Paycor acquisition, and $5.0B in long-term debt issued to finance that acquisition.

Total assets are $17.5B against total liabilities of $13.5B, yielding reported book equity of $4.0B. Under liquidation haircuts, the picture deteriorates sharply. Goodwill of $4.5B and acquired intangibles of $1.7B receive zero recovery; together they account for $6.3B of assets that vanish under the lens. PP&E of $0.57B recovers at best 50-70%, contributing $285M-$400M. The $4.5B AFS securities portfolio (funds held for clients) at fair value nets close to 100% in theory, but is matched by client fund obligations that must be settled at face value — these are pass-through items that net to approximately zero in a liquidation. Cash and equivalents of $1.7B recover at 100%. AR of $1.4B (net) recovers at 90-95% or approximately $1.3B-$1.4B.

On the liability side, $5.0B in long-term debt (including $400M Series A Senior Notes that matured March 13, 2026 — repaid subsequent to period-end — and $4.6B in remaining tranches maturing 2029-2035), $7.9B current liabilities, and $5.6B in noncurrent liabilities all remain at face value. The asymmetry between zero-recovery intangibles and face-value debt obligations produces strongly negative residual equity under any liquidation scenario.

The primary change since the prior filing (Q2 FY2026, November 30, 2025) is that the $400M Series A Senior Notes moved into current maturities and were subsequently repaid; this reduces long-term debt from approximately $5.35B to $4.95B as of period-end, and post-period to approximately $4.55B. The AFS investment portfolio increased modestly, with fair value moving to net unrealized gain of $7.2M from net unrealized loss of $9.0M at November 30, 2025, a meaningful improvement but immaterial to recovery posture. Operating lease liabilities are minimal at $59M noncurrent. No goodwill impairment was recognized. The Paycor acquisition-related intangible amortization continues at $60.5M per quarter ($181.5M YTD), gradually reducing the zero-recovery intangible stack but at a pace that does not alter the recovery picture within any near-term horizon. Filing discusses the $1.0B share repurchase program authorized January 16, 2026 and Paycor acquisition-related costs in MD&A but these are income-statement and equity allocation items, not balance-sheet recovery drivers.

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