Paychex Inc (PAYX)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,207,700 | 2,258,400 | 2,216,400 | 2,184,500 | 2,174,100 | 2,145,600 | 2,107,700 | 2,073,800 | 2,033,100 | 1,973,800 | 1,925,200 | 1,893,200 | 1,840,500 | 1,800,300 | 1,705,600 | 1,619,600 | 1,460,700 | 1,406,500 | 1,408,000 | 1,395,400 |
| 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 |
| Operating profit margin | 39.62% | 41.52% | 41.28% | 41.13% | 41.19% | 41.16% | 40.89% | 40.77% | 40.60% | 40.10% | 39.97% | 39.98% | 39.91% | 40.04% | 39.37% | 38.49% | 36.01% | 35.67% | 35.43% | 35.05% |
May 31, 2025 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,207,700K ÷ $5,571,700K
= 39.62%
The operating profit margin for Paychex Inc. demonstrates a consistent upward trend over the period from August 2020 through February 2025, with a few fluctuations observed toward the latter part of the period. Initially, the margin increased from 35.05% in August 2020 to approximately 36.01% by May 2021, indicating steady improvements in operating profitability. This positive trajectory continued with notable gains, reaching around 40.77% in August 2023 and 41.16% in February 2024, reflecting the company's enhanced efficiency and operational leverage.
Throughout this period, the margin remained relatively stable above 39%, with incremental increases suggesting ongoing enhancements in cost management, pricing strategies, or revenue growth. The peak observed was approximately 41.52% in February 2025, closely approaching the upper bounds of historical performance. However, a significant decline is seen in the subsequent May 2025 figure, where the margin drops to 39.62%, possibly indicating temporary changes in cost structures, competitive pressures, or other operational factors affecting profitability.
Overall, the data indicates that Paychex Inc. has experienced a substantial and sustained improvement in operating profit margins over the analyzed period, demonstrating effective operational control and profitability growth, with recent short-term variability that warrants further scrutiny.