Paychex (NAS:PAYX) EBIT

: $2,010 Mil (TTM As of Feb. 2023)

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Paychex's earnings before interest and taxes (EBIT) for the three months ended in Feb. 2023 was $626 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2023 was $2,010 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Paychex's annualized ROC % for the quarter that ended in Feb. 2023 was 22.07%. Paychex's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2023 was 546.90%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Paychex's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Feb. 2023 was 5.25%.

Paychex EBIT Historical Data

The historical data trend for Paychex's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Paychex Annual Data

Trend

May13

May14

May15

May16

May17

May18

May19

May20

May21

May22

EBIT

1,304.00

1,385.60

1,475.90

1,470.00

1,861.20

Paychex Quarterly Data
	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23
EBIT																563.30	397.90	501.10	484.40	626.40

Paychex EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Feb. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,010 Mil.

Paychex (NAS:PAYX) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Paychex's annualized ROC % for the quarter that ended in Feb. 2023 is calculated as:

	ROC % (Q: Feb. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2022 )	+	Invested Capital (Q: Feb. 2023 ))	/ count )
=	2447.6 * ( 1 - 24.3% )	/	( (7865.5	+	8924.1)	/ 2 )
=	1852.8332	/	8394.8
=	22.07 %

where

	Invested Capital		(Q: Nov. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	9214.3	-	86.7	-	( 1262.1	-	max(0, 4753.9	-	6198.2	+	1262.1	))
=	7865.5

	Invested Capital		(Q: Feb. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	10603.6	-	122.5	-	( 1557	-	max(0, 5958.1	-	7595.2	+	1557	))
=	8924.1

Note: The Operating Income data used here is four times the quarterly (Feb. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Paychex's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Feb. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Nov. 2022		Q: Feb. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2505.6	/	( ( (463.7 + max(-325.7, 0))	+	(452.6 + max(-525.3, 0)) )	/	2 )
=	2505.6	/	( ( 463.7	+	452.6 )	/	2 )
=	2505.6	/	458.15
=	546.90 %

where Working Capital is:

	Working Capital		(Q: Nov. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(873.6	+	0	+	3544.5)	-	(86.7	+	44.8	+	4612.3)
=	-325.7

	Working Capital		(Q: Feb. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(799.4	+	0	+	4623.2)	-	(122.5	+	43.8	+	5781.6)
=	-525.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Feb. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Paychex's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Feb. 2023 )
	=	2009.8	/	38310.446
	=	5.25 %

Paychex EBIT Related Terms

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Paychex (NAS:PAYX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Paychex Inc (NAS:PAYX) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

PAYX:Mexico PCX:Germany P1AY34:Brazil

Address

911 Panorama Trail South, Rochester, NY, USA, 14625-2396

Website

https://www.paychex.com

Paychex is a leading provider of payroll, human capital management, and insurance solutions servicing small and midsize clients primarily in the United States. The company, established in 1979, services over 730,000 clients and pays over 1 in 12 U.S. private-sector workers. Alongside its traditional payroll services, Paychex offers HCM solutions such as benefits administration and time and attendance software, as well as human resources outsourcing and insurance agency services.

Executives

Kevin A Price	director	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Karen E. Saunders-mcclendon	officer: VP, Chief Human Resources Offi	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Robert L. Schrader	officer: VP/Controller	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Kara Wilson	director	C/O SUCCESSFACTORS, INC., 1500 FASHION ISLAND BLVD., SUITE 300, SAN MATEO CA 94404
Tom Bonadio	director	1021 HOWARD AVE, SAN CARLOS CA 94070
John B Gibson	officer: Sr. VP, Service	CONVERGYS CORPORATION, 201 EAST FOURTH STREET, CINCINNATI OH 45202
Mark Anthony Bottini	officer: Sr. VP of Sales	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Kevin N Hill	officer: Vice President	50 WREN FIELD LN, PITTSFORD NY 114534
Michael E Gioja	officer: Sr. Vice President	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Rebecca F Bernson	officer: Sr. Vice President, Sales	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Efrain Rivera	officer: Sr. Vice President, CFO	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Laurie L. Zaucha	officer: Vice President	400 WILLOWBROOK OFFICE PARK, FAIRPORT NY 14450
Joseph Doody	director	CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701
Delbert M Humenik	officer: Sr. Vice President	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Jennifer R. Vossler	officer: VP/Controller	911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625