Paychex Inc (PAYX)
Gross profit margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 4,031,300 | 3,799,000 | 3,554,100 | 3,255,400 | 2,785,600 |
| Revenue | US$ in thousands | 5,571,700 | 5,278,300 | 5,007,100 | 4,611,700 | 4,056,800 |
| Gross profit margin | 72.35% | 71.97% | 70.98% | 70.59% | 68.66% |
May 31, 2025 calculation
Gross profit margin = Gross profit ÷ Revenue
= $4,031,300K ÷ $5,571,700K
= 72.35%
The analysis of Paychex Inc's gross profit margin over the specified period reveals a consistent upward trend. Starting at 68.66% as of May 31, 2021, the gross profit margin experienced gradual increases in subsequent years, reaching 70.59% by May 31, 2022, and further advancing to 70.98% by May 31, 2023. The margin continued its upward trajectory, attaining 71.97% by May 31, 2024, and culminating at 72.35% by May 31, 2025. This steady rise indicates an improvement in the company's ability to maintain or enhance gross profitability relative to its revenue base over the observed period. The positive trend suggests effective management of cost of goods sold (COGS) or service delivery expenses, a potential increase in pricing power, or a combination of both factors. Overall, Paychex Inc's gross profit margin reflects a favorable margin expansion, which can contribute to stronger overall profitability margins if maintained consistently in the future.