Name: Net Profit Margin

Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.

Interpretation:
• In '2021', PAYX's net profit margin was 27.1%, measuring the overall profitability of the company. Industry average for Diversified Commercial Services in '2021' stood at 14.2%.
• In '2022', PAYX's net profit margin was 30.2%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Diversified Commercial Services in '2022' stood at 2.8%. Industry average declined by 11.4% from previous year.
• In '2023', PAYX's net profit margin was 31.1%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Diversified Commercial Services in '2023' stood at -0.5%. Industry average declined by 3.4% from previous year.
• In '2024', PAYX's net profit margin was 32.0%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Diversified Commercial Services in '2024' stood at -22.7%. Industry average declined by 22.2% from previous year.
Overall, PAYX's net profit margin has steadily improved over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

Good Range: Ranges 5%-20% for many industries.