Paychex Inc (PAYX)
Operating profit margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,174,100 | 2,033,100 | 1,840,000 | 1,460,700 | 1,460,500 |
| Revenue | US$ in thousands | 5,278,300 | 5,007,100 | 4,611,700 | 4,056,800 | 4,040,500 |
| Operating profit margin | 41.19% | 40.60% | 39.90% | 36.01% | 36.15% |
May 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,174,100K ÷ $5,278,300K
= 41.19%
Paychex Inc's operating profit margin has shown a positive trend over the past five years, increasing from 36.15% in May 2020 to 41.19% in May 2024. This indicates that the company has been able to effectively control its operating expenses in relation to its revenue generation. The steady improvement in operating profit margin reflects strong operational efficiency and effective cost management strategies. It also suggests that Paychex has been successful in maintaining healthy financial performance and profitability over the years. The consistent growth in operating profit margin demonstrates the company's ability to sustain and enhance its operating income relative to its revenue, which is a positive indicator for investors and stakeholders.