Paychex Inc (PAYX)
Gross profit margin
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 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 | 2,759,700 | 3,116,700 | 3,048,000 | 2,946,200 |
| Revenue (ttm) | US$ in thousands | 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 | 4,040,500 | 4,105,800 | 4,033,500 | 3,901,700 |
| Gross profit margin | 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% | 68.30% | 75.91% | 75.57% | 75.51% |
May 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $3,799,000K ÷ $5,278,300K
= 71.97%
Paychex Inc has demonstrated a consistently strong gross profit margin over the past several periods, indicating a high efficiency in generating profits from its core operations. The margin has shown a positive trend, with gradual improvement from 68.32% in November 2020 to 71.97% in May 2024. This signifies that the company has effectively managed its cost of goods sold relative to its revenue. The stability and upward trajectory of the gross profit margin suggest that Paychex Inc has been able to maintain pricing power and control production costs. This healthy margin provides a solid foundation for profitability and reflects well on the company's operational performance.