Paychex Inc (PAYX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 71.97% | 71.73% | 71.54% | 71.26% | 70.98% | 70.68% | 70.47% | 70.54% | 70.59% | 70.82% | 70.26% | 69.66% | 68.66% | 68.37% | 68.32% | 68.28% | 68.30% | 75.91% | 75.57% | 75.51% |
| 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% |
| 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% |
| Net profit margin | 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% | 27.18% | 26.98% | 26.72% | 27.04% |
Paychex Inc's profitability ratios, as indicated by its gross profit margin, have been consistently strong, staying above 70% over the past few quarters. This suggests the company is effectively managing its cost of goods sold and generating a healthy level of revenue after accounting for direct costs.
Looking at the operating profit margin, Paychex Inc has demonstrated stable profitability in its core operations, with figures hovering around 40% in recent periods. This indicates the company is efficiently managing its operating expenses to generate profits before taking into account interest and taxes.
The pretax margin, reflecting the company's profitability before taxes, has also remained solid, ranging from 39% to 42% in recent quarters. This suggests that Paychex Inc is effectively managing its operating expenses, interest, and non-operating expenses to generate profits.
In terms of net profit margin, which indicates the company's bottom-line profitability after all expenses have been deducted, Paychex Inc has shown consistent performance, with margins above 30% in most periods. This reflects the company's ability to generate profits relative to its total revenue, demonstrating sound financial management and operational efficiency.
Overall, Paychex Inc's profitability ratios indicate a well-managed operation with a focus on cost control and revenue generation, resulting in healthy levels of profitability.
Return on investment
| 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 return on assets (Operating ROA) | 20.94% | 16.47% | 17.49% | 17.00% | 19.28% | 18.61% | 20.89% | 20.74% | 19.10% | 17.50% | 17.61% | 17.29% | 15.83% | 14.55% | 16.34% | 16.66% | 17.08% | 15.58% | 16.49% | 16.21% |
| Return on assets (ROA) | 16.28% | 12.75% | 13.52% | 13.09% | 14.77% | 14.18% | 15.92% | 15.76% | 14.46% | 13.22% | 13.20% | 13.02% | 11.89% | 10.92% | 12.29% | 12.48% | 12.84% | 11.70% | 12.39% | 12.21% |
| Return on total capital | 47.27% | 47.20% | 48.76% | 47.28% | 47.38% | 47.00% | 48.08% | 48.10% | 47.39% | 44.07% | 43.54% | 42.17% | 39.00% | 37.27% | 38.19% | 39.03% | 40.82% | 41.48% | 42.62% | 42.23% |
| Return on equity (ROE) | 44.47% | 44.32% | 46.24% | 44.52% | 44.58% | 44.20% | 45.76% | 45.85% | 45.14% | 41.37% | 41.00% | 40.07% | 37.23% | 35.45% | 36.65% | 37.63% | 39.48% | 40.14% | 41.95% | 41.88% |
Paychex Inc has shown consistent profitability over the past few years based on its profitability ratios. The Operating return on assets (Operating ROA) has been steadily increasing, reflecting the company's ability to generate operating income from its assets efficiently. The Return on assets (ROA) has also shown an upward trend, indicating the company's ability to generate profits relative to its total assets.
Furthermore, the Return on total capital and Return on equity (ROE) ratios have remained relatively high and stable, indicating that Paychex Inc has been able to effectively utilize both its total capital and shareholder equity to generate returns for investors.
Overall, the company's profitability ratios suggest strong financial performance and efficient management of assets and capital, which bodes well for its continued success and value creation for shareholders.