Paychex Inc (PAYX)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,174,100 | 2,145,600 | 2,107,700 | 2,073,800 | 2,033,100 | 1,973,800 | 1,924,700 | 1,892,700 | 1,840,000 | 1,799,800 | 1,705,600 | 1,619,600 | 1,460,700 | 1,406,500 | 1,408,000 | 1,395,400 | 1,460,500 | 1,475,400 | 1,434,600 | 1,400,100 |
| 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 |
| Operating profit margin | 41.19% | 41.16% | 40.89% | 40.77% | 40.60% | 40.10% | 39.96% | 39.97% | 39.90% | 40.03% | 39.37% | 38.49% | 36.01% | 35.67% | 35.43% | 35.05% | 36.15% | 35.93% | 35.57% | 35.88% |
May 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,174,100K ÷ $5,278,300K
= 41.19%
The operating profit margin of Paychex Inc has shown a generally positive trend over the past two years, with a gradual increase from 35.57% in November 2019 to 41.19% in May 2024. This indicates that the company has been effectively managing its operating expenses relative to its revenue during this period.
There have been fluctuations in the operating profit margin, with some slight decreases interspersed among overall improvements. Notably, there was a dip to 35.43% in November 2020 followed by a recovery and subsequent upward trajectory.
The company achieved its highest operating profit margin of 41.19% in May 2024, which may suggest that Paychex Inc has been able to enhance its operational efficiency and profitability. However, it is important to continue monitoring future financial reports to assess the company's ability to sustain or further improve its operating profit margin.