Paychex (PAYX) Margins & Profitability 2020-2026

Gross, EBITDA, operating, and net margin trends

Margins

Profit margins across the income statement

Gross Margin: 76.2%
EBITDA Margin: 49.9%
Op. Margin: 43.8%
Net Margin: 31.0%

Op. margin of 43.8% is down 2.1% YoY — costs are rising relative to revenue. Net margin at 31.0% and gross margin of 76.2% — earnings take a bigger bite when COGS stays lean..

Gross Margin (%)

Revenue left after direct cost of goods sold

EBITDA Margin (%)

Operating profitability independent of capital structure

Operating & Net Margins (%)

How much of each dollar becomes profit