Common-Size Income Statement
Paying user area
Try for free
Automatic Data Processing Inc. pages available for free this week:
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Automatic Data Processing Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Automatic Data Processing Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
- Revenue Composition Trends
- Over the observed period, the share of revenues from sources other than client funds interest and PEO activities decreased gradually from 70.57% in mid-2016 to 65.1% in mid-2021. Concurrently, the proportion of Professional Employer Organization (PEO) revenues showed a consistent increase, rising from 26.2% to 32.08%, indicating an expanding emphasis on PEO-related services. Interest on funds held for clients exhibited some fluctuation, peaking at 3.96% in mid-2019 before declining to 2.81% by mid-2021.
- Operating Expenses and Cost Structure
- Operating expenses as a percentage of revenues remained relatively stable, fluctuating slightly around the 50-51% range and ending at 50.12% in the latest period. Systems development and programming costs demonstrated a slight downward trend from 5.17% to 4.78%, reflecting possibly improved efficiencies or cost management in technology-related expenditures. Depreciation and amortization expenses increased steadily from 1.81% to 2.69%, suggesting either asset base growth or changes in capitalization policies. Total costs of revenues declined modestly from 58.63% to 57.58%, contributing positively to profitability.
- Profitability Indicators
- Gross profit margins exhibited an overall upward trend, moving from 41.37% to 42.42%, with a notable peak at 42.95% in mid-2019. Selling, general, and administrative expenses consistently decreased from 22.6% to 20.26%, implying enhanced operational efficiency. Operating income improved significantly from 18.77% to 22.16%, demonstrating strong operational leverage and improved cost control.
- Financial and Other Income Charges
- Interest expense peaked in mid-2019 at 0.92% but subsequently declined sharply to 0.4%, indicating reduced borrowing costs or debt levels. Interest income from corporate funds declined notably from 0.53% to 0.24%, which might reflect a lower yield environment or changes in cash management strategies. Realized gains or losses on securities remained near zero, showing minimal impact. Non-service components of pension income shifted from a substantial expense of -2.4% in mid-2018 to positive contributions around 0.39%, reflecting improved pension fund performance or accounting adjustments. Impairment charges were minor but present in 2019-2021, suggesting occasional asset revaluations.
- Earnings Performance
- Earnings from continuing operations before taxes showed recovery and growth from a dip at 16.29% in mid-2018 to 22.4% by mid-2021. The provision for income taxes remained relatively steady between 4% and 6%, indicating consistent effective tax rates. Net earnings from continuing operations rose markedly from 12.8% to 17.32%, signifying enhanced profitability and effective operational management. Net loss from discontinued operations was negligible and limited to early periods.