Paychex Inc (PAYX)
Net 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,657,300 | 1,740,000 | 1,719,300 | 1,698,600 | 1,690,400 | 1,660,900 | 1,629,700 | 1,597,300 | 1,557,300 | 1,503,300 | 1,466,600 | 1,438,400 | 1,392,800 | 1,359,400 | 1,279,200 | 1,219,500 | 1,097,500 | 1,055,200 | 1,059,200 | 1,045,500 |
| 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 |
| Net profit margin | 29.74% | 31.99% | 32.02% | 31.98% | 32.03% | 31.86% | 31.62% | 31.40% | 31.10% | 30.54% | 30.45% | 30.38% | 30.20% | 30.23% | 29.53% | 28.98% | 27.05% | 26.76% | 26.66% | 26.26% |
May 31, 2025 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,657,300K ÷ $5,571,700K
= 29.74%
The net profit margin of Paychex Inc. demonstrates a consistent upward trend over the analyzed period, reflecting sustained improvements in profitability. Starting from a margin of 26.26% as of August 31, 2020, it gradually increased, reaching approximately 31.62% by November 30, 2023. This steady rise signifies enhanced efficiency in converting revenue into net profits, potentially driven by operational efficiencies, revenue growth, or favorable cost management.
The marginal fluctuations observed from May 2021 onwards, with margins generally ascending, suggest stability in profitability margins despite some short-term variability. Notably, the net profit margin peaked at approximately 32.02% on November 30, 2024, indicating a period of optimal profitability. However, a slight decline is observed thereafter, with the margin decreasing to about 29.74% by May 31, 2025. This decline may imply increased competitive pressures, operational challenges, or adverse cost factors impacting net profitability.
Overall, the trend indicates that Paychex Inc. has experienced a sustained improvement in its net profit margin over the period, culminating in a relatively high profitability level before experiencing a modest decline toward the end of the analyzed timeline.