Paychex Inc (PAYX)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 2,218,000 | 2,189,800 | 2,148,000 | 2,105,300 | 2,048,200 | 1,973,400 | 1,910,300 | 1,872,700 | 1,824,600 | 1,781,700 | 1,690,000 | 1,602,000 | 1,434,200 | 1,379,900 | 1,381,500 | 1,368,900 | 1,437,100 | 1,456,000 | 1,417,400 | 1,389,700 |
| 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 |
| Pretax margin | 42.02% | 42.01% | 41.67% | 41.39% | 40.91% | 40.10% | 39.66% | 39.55% | 39.56% | 39.62% | 39.01% | 38.07% | 35.35% | 35.00% | 34.77% | 34.39% | 35.57% | 35.46% | 35.14% | 35.62% |
May 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,218,000K ÷ $5,278,300K
= 42.02%
Paychex Inc's pretax margin has shown a generally increasing trend over the recent periods. The pretax margin, which is a measure of a company's profitability before accounting for taxes, stood at 42.02% as of May 31, 2024, indicating that the company generated $0.42 in pretax profit for every dollar of revenue. This represents a slight improvement compared to the previous period's margin of 42.01%.
Looking back over the past several quarters, Paychex Inc has been able to maintain relatively high pretax margins, ranging from 34.39% to 42.02%. This consistency in generating pretax profits suggests efficient cost management and revenue generation strategies. The gradual increase in the pretax margin over time may indicate improvements in operational efficiency, pricing strategies, or the ability to control costs effectively.
Overall, the upward trend in pretax margin for Paychex Inc reflects positively on the company's financial health and profitability, showcasing its ability to generate earnings from its core operations before tax considerations.