Paychex's gross profit for the
three
months ended in Feb. 2023 was $1,008 Mil. Paychex's gross profit for the trailing twelve months (TTM) ended in Feb. 2023 was $3,479 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Paychex's gross profit for the
three
months ended in Feb. 2023 was $1,008 Mil. Paychex's Revenue for the
three
months ended in Feb. 2023 was $1,381 Mil. Therefore, Paychex's Gross Margin % for the quarter that ended in Feb. 2023 was 73.00%.
Paychex had a gross margin of 73.00% for the quarter that ended in Feb. 2023 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of Paychex was 71.14%. The lowest was 68.30%. And the median was 70.55%.
Paychex Gross Profit Historical Data
The historical data trend for Paychex's Gross Profit 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
Gross Profit
2,359.50
2,594.70
2,759.70
2,785.60
3,255.40
Paychex Quarterly Data
May18
Aug18
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
Gross Profit
923.80
784.30
855.20
831.00
1,008.10
Competitive Comparison
For the Staffing & Employment Services subindustry, Paychex's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paychex Gross Profit Distribution
For the Business Services industry and Industrials sector, Paychex's Gross Profit distribution charts can be found below:
* The bar in red indicates where Paychex's Gross Profit falls in comparison to its industry or sector. The grey bar indicates the Gross Profit's extreme value range as defined by GuruFocus.
Paychex Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Paychex's Gross Profit for the fiscal year that ended in May. 2022 is calculated as
Gross Profit 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 $3,479 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Paychex's Gross Margin % for the quarter that ended in Feb. 2023 is calculated as
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Paychex (NAS:PAYX) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Paychex had a gross margin of 73.00% for the quarter that ended in Feb. 2023 => Durable competitive advantage
Paychex Gross Profit Related Terms
Thank you for viewing the detailed overview of Paychex's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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