Paychex (PAYX) FY2020 results: revenue $4.0 billion, up 7.1% on the year
Paychex Inc. (PAYX) reported revenue of $4.0 billion for fiscal 2020, the year ended 31 May 2020, up 7.1% on the year before. Net income was $1.1 billion, up 6.2%, and diluted earnings per share $3.04. The figures are the company's own, from the 10-K it filed with the SEC on 17 July 2020.
Revenue
$4.0 billion
+7.1% on the year
FY2013FY2020
Operating margin
36.1%
36.3% a year earlier
FY2013FY2020
Net income
$1.1 billion
+6.2% on the year
FY2013FY2020
Diluted EPS
$3.04
+6.3% on the year
FY2013FY2020
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Revenue
4,040
3,772
3,381
+7.1%
Cost of revenue
1,281
1,178
1,018
+8.7%
Gross profit
2,760
2,595
2,363
+6.4%
Gross margin
68.3%
68.8%
69.9%
Selling, general and administrative
1,299
1,223
1,068
+6.2%
Operating income
1,460
1,371
1,292
+6.5%
Operating margin
36.1%
36.3%
38.2%
Interest expense
38.8
17.6
3.9
+120.5%
Pre-tax income
1,437
1,368
1,300
+5.1%
Income tax
339
334
306
+1.6%
Effective tax rate
23.6%
24.4%
23.5%
Net income
1,098
1,034
994
+6.2%
Net margin
27.2%
27.4%
29.4%
Diluted EPS
$3.04
$2.86
$2.75
+6.3%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Operating cash flow
1,441
1,272
1,276
+13.3%
Capital expenditure
127
124
154
+2.6%
Free cash flow
1,314
1,148
1,122
+14.5%
Free cash flow margin
32.5%
30.4%
33.2%
Cash from investing
772
-1,628
998
Cash from financing
-1,488
-1,008
-424
Depreciation and amortisation
210
182
138
+15.5%
Share-based compensation
47.4
46.2
44.6
+2.6%
Buybacks
172
56.9
143
+202.1%
Dividends paid
889
827
740
+7.6%
Dividend per share
$2.48
$2.30
$2.06
+7.8%
Diluted shares, weighted
361m
362m
362m
-0.2%
Shares outstanding at period end
359m
359m
359m
-0.1%
Balance sheet
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Shareholders' equity
2,781
2,620
2,357
+6.2%
Debt
802
796
0.0
+0.7%
Operating lease liabilities
96.9
13.0
n/a
+645.4%
Other liabilities
4,870
5,247
5,559
-7.2%
Total liabilities and equity
8,551
8,676
7,915
-1.4%
Fixed assets
407
409
394
-0.3%
Goodwill
1,791
1,783
814
+0.5%
Intangible assets
331
399
141
-17.2%
Investments
37.4
49.2
362
-24.0%
Cash and equivalents
905
674
358
+34.4%
Other assets
5,079
5,363
5,847
-5.3%
Total assets
8,551
8,676
7,915
-1.4%
10-K for the year ended 31 May 2020, filed 17 July 2020: the filing.