Paychex (LTS:0KGE) COGS-to-Revenue : 0.26 (As of Feb. 2025)

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What is Paychex COGS-to-Revenue?

Paychex's Cost of Goods Sold for the three months ended in Feb. 2025 was $387 Mil. Its Revenue for the three months ended in Feb. 2025 was $1,509 Mil.

Paychex's COGS to Revenue for the three months ended in Feb. 2025 was 0.26.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Paychex's Gross Margin % for the three months ended in Feb. 2025 was 74.33%.

Paychex COGS-to-Revenue Historical Data

The historical data trend for Paychex's COGS-to-Revenue 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.

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Paychex COGS-to-Revenue Chart

Paychex Annual Data

Trend

May15

May16

May17

May18

May19

May20

May21

May22

May23

May24

COGS-to-Revenue

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0.32

0.31

0.29

0.28

Paychex Quarterly Data
	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25
COGS-to-Revenue	Get a 7-Day Free Trial															0.26	0.29	0.29	0.29	0.26

Paychex COGS-to-Revenue Calculation

Paychex's COGS to Revenue for the fiscal year that ended in May. 2024 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	1479.3	/	5278.3
	=	0.28

Paychex's COGS to Revenue for the quarter that ended in Feb. 2025 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	387.4	/	1509
	=	0.26

Paychex (LTS:0KGE) COGS-to-Revenue Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

Paychex's Gross Margin % for the three months ended in Feb. 2025 is calculated as:

Gross Margin %	=	1	-	COGS to Revenue
	=	1	-	Cost of Goods Sold / Revenue
	=	1	-	387.4 / 1509
	=	74.33 %

A company that has a moat can usually maintain or even expand their Gross Margin. A company can increase its Gross Margin in two ways. It can increase the prices of the goods it sells and keeps its Cost of Goods Sold unchanged. Or it can keep the sales price unchanged and squeeze its suppliers to reduce the Cost of Goods Sold. Warren Buffett believes businesses with the power to raise prices have moats.

Paychex COGS-to-Revenue Related Terms

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Paychex Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Paychex Inc (LTS:0KGE) » Definitions » COGS-to-Revenue

Comparable Companies

Traded in Other Exchanges

PAYX:USA 1PAYX:Italy PCX:Germany PCX:Germany PCX:Germany P1AY34:Brazil PAYX:Austria

Address

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

Website

https://www.paychex.com

Paychex is a technology company providing human capital management solutions, enabling clients to better implement payroll, talent, time, tax, and benefits administration. It has a diverse set of product offerings addressing client needs. Aside from its traditional cloud-based payroll and HCM software offering, which accounts for close to half of total revenue, the company provides outsourcing options. Paychex's administrative service organization and professional employer organization accounts generate over 40% of sales. The balance of revenue is generated through retirement services, insurance solutions, and other products. In fiscal 2024, the company had 745,000 clients and over 2.3 million worksite employees across its ASO and PEO.

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