Paychex Inc (PAYX)
Gross profit margin
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 4,031,300 | 3,917,800 | 3,855,700 | 3,811,700 | 3,799,000 | 3,738,900 | 3,687,500 | 3,624,700 | 3,554,100 | 3,478,600 | 3,394,300 | 3,340,200 | 3,255,400 | 3,184,500 | 3,044,000 | 2,930,900 | 2,785,600 | 2,695,600 | 2,714,700 | 2,718,200 |
| Revenue (ttm) | US$ in thousands | 5,571,700 | 5,439,500 | 5,369,800 | 5,310,800 | 5,278,300 | 5,212,800 | 5,154,500 | 5,086,900 | 5,007,100 | 4,921,800 | 4,816,800 | 4,735,000 | 4,611,700 | 4,496,600 | 4,332,300 | 4,207,500 | 4,056,800 | 3,942,700 | 3,973,700 | 3,980,700 |
| Gross profit margin | 72.35% | 72.03% | 71.80% | 71.77% | 71.97% | 71.73% | 71.54% | 71.26% | 70.98% | 70.68% | 70.47% | 70.54% | 70.59% | 70.82% | 70.26% | 69.66% | 68.66% | 68.37% | 68.32% | 68.28% |
May 31, 2025 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,031,300K ÷ $5,571,700K
= 72.35%
The gross profit margin of Paychex Inc demonstrates a consistent upward trend over the analyzed period from August 31, 2020, through May 31, 2025. Starting at approximately 68.28% in August 2020, the margin has gradually increased, reaching approximately 72.35% by May 2025.
Throughout this timeframe, the gross profit margin exhibits steady growth with minor fluctuations. Notably, there is a discernible acceleration in margin expansion beginning around mid-2021, where the margin surpasses 69%, continuing to rise above 70% by late 2021 and maintaining this level into 2022. The margin reaches and stabilizes near 70.5%–71.0% during 2022 and early 2023, indicating stable gross profitability.
From mid-2023 onwards, the gross profit margin continues its incremental ascent, crossing 71.5% and approaching 72% by early 2024. The upward trajectory persists through the subsequent periods, with the margin surpassing 72% in 2024 and reaching approximately 72.35% by May 2025.
This sustained increase suggests improvements in gross profitability, potentially attributable to factors such as favorable revenue mix, cost control measures, operational efficiencies, or pricing strategies. The relatively narrow fluctuations imply a consistent ability to maintain and enhance gross profit margins over time.
Overall, the trend indicates a positive trajectory in Paychex Inc’s gross profitability, reflecting ongoing operational effectiveness and potentially strengthening competitive positioning within its market sector.