Monday, December 17, 2007

PAYX Balance Sheet

Dear Diary,

After a full evaluation of the most recent annual report of Paychex (PAYX), I see on the balance sheet that current assets are not the minimum of $2 for every $1 in current liabilities, required in my work. I also see that shareholder equity on the balance sheet is not at least half of total assets, as required. PAYX will be an interesting observation to see if their economics ever come into line with my expectations for an investment.

I see that Harley Davidson (HOG) has good numbers on these topics as well, just a hair under the ratio of shareholder equity to total assets described above, but we'll be OK for now.

American Eagle Outfitters (AEO) has flawless numbers in the matters we discuss above.

I called for several financial reports today on companies in the health care industry.

Gene