Paychex (NAS:PAYX) Pretax Margin %

: 44.71% (As of Feb. 2023)

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Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Paychex's Pre-Tax Income for the three months ended in Feb. 2023 was $617 Mil. Paychex's Revenue for the three months ended in Feb. 2023 was $1,381 Mil. Therefore, Paychex's pretax margin for the quarter that ended in Feb. 2023 was 44.71%.

The historical rank and industry rank for Paychex's Pretax Margin % or its related term are showing as below:

PAYX' s Pretax Margin % Range Over the Past 10 Years
Min: 35.35 Med: 38.85 Max: 40.1
Current: 40.1

PAYX's Pretax Margin % is ranked better than
95.89% of 1045 companies
in the Business Services industry
Industry Median: 5.14 vs PAYX: 40.10

Paychex Pretax Margin % Historical Data

The historical data trend for Paychex's Pretax Margin % 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

Pretax Margin %

38.49

36.26

35.57

35.35

39.56

Paychex Quarterly Data
	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23
Pretax Margin %																43.44	33.98	40.79	39.92	44.71

Paychex Pretax Margin % Calculation

Pretax margin - also known as pretax profit margin is the ratio of Pretax Income divided by net sales or Revenue, usually presented in percent.

Paychex's Pretax Margin for the fiscal year that ended in May. 2022 is calculated as

Pretax Margin	=	Pre-Tax Income (A: May. 2022 )	/	Revenue (A: May. 2022 )
	=	1824.6	/	4611.7
	=	39.56 %

Paychex's Pretax Margin for the quarter that ended in Feb. 2023 is calculated as

Pretax Margin	=	Pre-Tax Income (Q: Feb. 2023 )	/	Revenue (Q: Feb. 2023 )
	=	617.4	/	1381
	=	44.71 %

Paychex (NAS:PAYX) Pretax Margin % Explanation

The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.

The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.

It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.

The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.

Paychex Pretax Margin % Related Terms

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Paychex (NAS:PAYX) Business Description

Industry

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

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