Paychex Inc (PAYX)
Net profit margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,690,400 | 1,557,300 | 1,392,800 | 1,097,500 | 1,098,100 |
| Revenue | US$ in thousands | 5,278,300 | 5,007,100 | 4,611,700 | 4,056,800 | 4,040,500 |
| Net profit margin | 32.03% | 31.10% | 30.20% | 27.05% | 27.18% |
May 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $1,690,400K ÷ $5,278,300K
= 32.03%
The net profit margin of Paychex Inc has shown a generally increasing trend over the past five years. From May 31, 2020, where it stood at 27.18%, it has steadily risen to 32.03% by May 31, 2024. This indicates the company's ability to effectively control its expenses relative to its revenue, resulting in a higher proportion of revenue translating into profit. The consistent improvement in net profit margin reflects positively on the company's operational efficiency and profitability management. The incremental growth in net profit margin suggests that Paychex Inc has been successful in generating more profit from each dollar of sales, ultimately enhancing shareholder value.