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Paychex (Paychex) EBIT : $2,255 Mil (TTM As of May. 2024)


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What is Paychex EBIT?

Paychex's earnings before interest and taxes (EBIT) for the three months ended in May. 2024 was $501 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2024 was $2,255 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 May. 2024 was 14.91%. Paychex's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2024 was 428.19%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Paychex's Earnings Yield (Joel Greenblatt) % for the quarter that ended in May. 2024 was 5.18%.


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 EBIT Chart

Paychex Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,475.90 1,470.00 1,861.20 2,084.90 2,255.30

Paychex Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 473.00 558.50 526.40 669.10 501.30

Competitive Comparison of Paychex's EBIT

For the Staffing & Employment Services subindustry, Paychex's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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's EV-to-EBIT Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Paychex's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Paychex's EV-to-EBIT falls into.



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 May. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,255 Mil.

* 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.


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 May. 2024 is calculated as:

ROC % (Q: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2024 ) + Invested Capital (Q: May. 2024 ))/ count )
=1927.2 * ( 1 - 22.75% )/( (11199.7 + 8776)/ 2 )
=1488.762/9987.85
=14.91 %

where

Note: The Operating Income data used here is four times the quarterly (May. 2024) data.

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

Paychex's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: May. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Feb. 2024  Q: May. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2005.2/( ( (478 + max(-439.3, 0)) + (458.6 + max(-107.4, 0)) )/ 2 )
=2005.2/( ( 478 + 458.6 )/ 2 )
=2005.2/468.3
=428.19 %

where Working Capital is:

Working Capital(Q: Feb. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1088.6 + 0 + 6454.1) - (94 + 51.7 + 7836.3)
=-439.3

Working Capital(Q: May. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1059.6 + 0 + 4123.4) - (104.3 + 50.2 + 5135.9)
=-107.4

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (May. 2024) 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: May. 2024 )
=2255.3/43543.869
=5.18 %

* 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.


Paychex EBIT Related Terms

Thank you for viewing the detailed overview of Paychex's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.


Paychex (Paychex) Business Description

Traded in Other Exchanges
Address
911 Panorama Trail South, Rochester, NY, USA, 14625-2396
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 740,000 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
Flaschen David J S director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Christopher C Simmons officer: VP, Controller & Treasurer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Michael E Gioja officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Efrain Rivera officer: Sr. Vice President, CFO 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Martin Mucci officer: Sr. Vice President 911 PANORAMA TRAIL S, ROCHESTER NY 14625
Joseph M Tucci director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Joseph M Velli director
Elizabeth Roaldsen officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Karen E. Saunders-mcclendon officer: VP, Chief Human Resources Offi 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Theresa M. Payton director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
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
Robert L. Schrader officer: VP/Controller 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Stephanie L Schaeffer officer: Chief Legal Officer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Joseph Doody director CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701

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