Paychex, Inc. (PAYX) has reported 22.07 percent rise in profit for the quarter ended Aug. 31, 2015. The company has earned $209.10 million, or $0.58 a share in the quarter, compared with $171.30 million, or $0.47 a share for the same period last year. Revenue during the quarter grew 8.43 percent to $723 million from $666.80 million in the previous year period. Total expenses were 59.05 percent of quarterly revenues, down from 59.88 percent for the same period last year. This has led to an improvement of 84 basis points in operating margin to 40.95 percent.
Operating income for the quarter was $296.10 million, compared with $267.50 million in the previous year period.
Operating cash flow improvesPaychex, Inc. has generated cash of $278.30 million from operating activities during the quarter, up 5.78 percent or $15.20 million, when compared with the last year period. Cash flow from investing activities was $759.90 million for the quarter, up 111.73 percent or $401 million, when compared with the last year period.
The company has spent $752.30 million cash to carry out financing activities during the quarter as against cash outgo of $311.90 million in the last year period.
Cash and cash equivalents stood at $455.90 million as on Aug. 31, 2015, down 1.45 percent or $6.70 million from $462.60 million on Aug. 31, 2014.
Working capital increases marginally
Paychex, Inc. has recorded an increase in the working capital over the last year. It stood at $541.80 million as at Aug. 31, 2015, up 2.61 percent or $13.80 million from $528 million on Aug. 31, 2014. Current ratio was at 1.13 as on Aug. 31, 2015, up from 1.12 on Aug. 31, 2014.
Days sales outstanding went down to 15 days for the quarter compared with 27 days for the same period last year.
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