Paychex Inc (PAYX)
Net profit margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,657,300 | 1,690,400 | 1,557,300 | 1,392,800 | 1,097,500 |
| Revenue | US$ in thousands | 5,571,700 | 5,278,300 | 5,007,100 | 4,611,700 | 4,056,800 |
| Net profit margin | 29.74% | 32.03% | 31.10% | 30.20% | 27.05% |
May 31, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $1,657,300K ÷ $5,571,700K
= 29.74%
The net profit margin of Paychex Inc has exhibited a generally positive trend over the specified period from May 31, 2021, through May 31, 2025. In May 2021, the net profit margin stood at 27.05%, indicating a relatively efficient conversion of revenue into net income. This margin increased significantly by May 31, 2022, reaching 30.20%, suggesting improved profitability and operational efficiency. The upward trajectory continued into May 31, 2023, with the margin rising further to 31.10%, reflecting sustained profitability improvements. The margin maintained its upward momentum in May 31, 2024, reaching 32.03%, which was the peak within this period, indicating that the company was able to generate more profit from its revenues than in previous years.
However, by May 31, 2025, the net profit margin experienced a decline to 29.74%. Despite this decrease, the margin remained higher than the levels observed in 2021, illustrating that the company's profitability, while slightly diminished, still retained overall strength compared to the earlier period.
Overall, the net profit margin trend suggests that Paychex Inc has been able to enhance its profitability over the three-year span, with a brief contraction occurring in the final year. The pattern points to effective cost control or revenue growth strategies contributing to margin expansion during the majority of the analyzed period.