Debt to Equity
since 2005
Calculation
Automatic Data Processing Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Jun 30, 2021 | 0.53 | = | 3,008,500) | ÷ | 5,670,100) |
| Jun 30, 2020 | 0.35 | = | 2,018,200) | ÷ | 5,752,200) |
| Jun 30, 2019 | 0.42 | = | 2,264,200) | ÷ | 5,399,900) |
| Jun 30, 2018 | 0.58 | = | 2,002,400) | ÷ | 3,459,600) |
| Jun 30, 2017 | 0.50 | = | 2,002,400) | ÷ | 3,977,000) |
| Jun 30, 2016 | 0.45 | = | 2,007,700) | ÷ | 4,481,600) |
| Jun 30, 2015 | 0.00 | = | 9,200) | ÷ | 4,808,500) |
| Jun 30, 2014 | 0.33 | = | 2,184,500) | ÷ | 6,670,200) |
| Jun 30, 2013 | 0.04 | = | 260,600) | ÷ | 6,189,900) |
| Jun 30, 2012 | 0.00 | = | 16,800) | ÷ | 6,114,000) |
| Jun 30, 2011 | 0.01 | = | 34,200) | ÷ | 6,010,400) |
| Jun 30, 2010 | 0.01 | = | 39,800) | ÷ | 5,478,900) |
| Jun 30, 2009 | 0.15 | = | 772,700) | ÷ | 5,322,600) |
| Jun 30, 2008 | 0.01 | = | 63,900) | ÷ | 5,087,200) |
| Jun 30, 2007 | 0.01 | = | 43,500) | ÷ | 5,147,900) |
| Jun 30, 2006 | 0.01 | = | 74,300) | ÷ | 6,011,600) |
| Jun 30, 2005 | 0.01 | = | 75,800) | ÷ | 5,783,800) |
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), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$ in thousands
The financial structure exhibits a transition from a low-leverage model to a more leveraged capital position between 2005 and 2021. For the first several years of the period, the debt-to-equity ratio remained near zero, indicating a heavy reliance on equity financing. However, the subsequent years demonstrate increased volatility in total debt and a gradual upward shift in the overall leverage ratio.
- Total Debt Trends
- Debt levels were minimal from 2005 through 2008, followed by a temporary spike in 2009. After returning to low levels between 2010 and 2012, a substantial increase occurred in 2013, reaching approximately 2.18 billion in 2014. Following a sharp decrease in 2015, debt levels remained consistently elevated, exceeding 2 billion annually from 2016 through 2021, reaching a peak of approximately 3.01 billion in 2021.
- Stockholders' Equity Fluctuations
- Equity demonstrated steady growth from 2005 through 2014, peaking at 6.67 billion. A significant contraction period occurred between 2015 and 2018, during which equity declined to a low of 3.46 billion. A recovery phase began in 2019, with equity increasing back to 5.67 billion by 2021.
- Debt to Equity Ratio Analysis
- The ratio remained negligible, at 0.01 or lower, for most of the period until 2009. A structural shift toward higher leverage became evident after 2013, with the ratio climbing from 0.04 in 2013 to a peak of 0.58 in 2018. Despite a moderate decline to 0.35 in 2020, the ratio rose again to 0.53 by 2021, reflecting an increased utilization of debt relative to shareholder capital compared to the historical baseline established prior to 2013.
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Comparison to Competitors
Automatic Data Processing Inc., debt to equity, long-term trends, comparison to competitors
| Automatic Data Processing Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2021 | 0.53 | 0.00 | 0.28 | 1.51 | 0.13 | 0.71 | 2.74 | 0.21 | 0.50 | 16.08 | 0.00 | 5.08 | 0.07 | 0.43 | 0.02 | 0.55 |
| Jun 30, 2020 | 0.35 | 0.00 | 0.31 | — | 0.14 | 0.60 | 2.99 | 0.66 | 0.62 | 5.93 | 0.13 | 2.80 | 0.09 | 0.58 | 0.03 | 0.51 |
| Jun 30, 2019 | 0.42 | 0.00 | 0.39 | — | 0.16 | 0.00 | 3.02 | 0.12 | 0.77 | 2.58 | — | 0.90 | 0.22 | 0.33 | 0.03 | 0.62 |
| Jun 30, 2018 | 0.58 | 0.00 | 0.44 | — | 0.35 | — | 2.73 | 0.19 | 0.97 | 1.33 | — | 1.99 | 0.21 | 0.60 | 0.13 | 0.94 |
| Jun 30, 2017 | 0.50 | 0.00 | 0.22 | — | 0.74 | — | 2.66 | 0.36 | 1.23 | 1.08 | — | 0.69 | 0.32 | 2.01 | 0.04 | 0.46 |
| Jun 30, 2016 | 0.45 | 0.00 | 0.26 | — | 0.93 | — | 2.31 | 0.86 | 0.76 | 0.93 | — | 0.64 | 0.36 | 1.31 | 0.06 | 0.45 |
| Jun 30, 2015 | 0.00 | 0.00 | 0.27 | — | 0.25 | — | 2.80 | 0.21 | 0.44 | 0.86 | — | 1.00 | 0.49 | 0.84 | 0.07 | 0.44 |
| Jun 30, 2014 | 0.33 | 0.00 | 0.22 | — | 0.52 | — | 3.44 | 0.16 | 0.25 | 0.52 | — | 1.00 | 0.79 | 1.04 | 0.02 | 0.41 |
| Jun 30, 2013 | 0.04 | 0.01 | 0.23 | — | 0.28 | — | 1.74 | 0.14 | 0.20 | 0.41 | — | 0.00 | 0.25 | 1.05 | 0.04 | 0.04 |
| Jun 30, 2012 | 0.00 | 0.00 | 0.23 | — | 0.49 | — | 1.76 | 0.18 | 0.18 | 0.38 | — | 0.00 | 0.35 | 0.00 | 0.05 | — |
| Jun 30, 2011 | 0.01 | 0.00 | 0.26 | — | 1.04 | — | 1.56 | 0.38 | 0.21 | 0.40 | — | — | 0.38 | — | 0.00 | — |
| Jun 30, 2010 | 0.01 | 0.00 | 0.29 | — | 1.99 | — | 1.24 | 0.35 | 0.13 | 0.48 | — | — | 0.45 | — | 0.00 | — |
| Jun 30, 2009 | 0.15 | 0.00 | 0.20 | — | 4.02 | — | 1.15 | 0.39 | 0.15 | 0.41 | — | — | 0.01 | — | 0.00 | — |
| Jun 30, 2008 | 0.01 | 0.00 | 0.08 | — | 4.91 | — | 2.52 | 0.48 | 0.00 | 0.49 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2007 | 0.01 | 0.01 | 0.00 | — | 0.35 | — | 1.24 | 0.49 | 0.00 | 0.45 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2006 | 0.01 | 0.03 | 0.00 | — | 0.45 | — | 0.80 | 0.00 | 0.00 | 0.39 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2005 | 0.01 | 0.04 | 0.00 | — | 0.31 | — | 0.68 | 0.00 | 0.00 | 0.26 | — | — | 0.01 | — | 0.00 | — |
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), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Sector (Software & Services)
Automatic Data Processing Inc., debt to equity, long-term trends, comparison to sector (software & services)
| Automatic Data Processing Inc. | Software & Services | |
|---|---|---|
| Jun 30, 2021 | 0.53 | 0.83 |
| Jun 30, 2020 | 0.35 | 0.95 |
| Jun 30, 2019 | 0.42 | 1.04 |
| Jun 30, 2018 | 0.58 | 1.07 |
| Jun 30, 2017 | 0.50 | 1.14 |
| Jun 30, 2016 | 0.45 | 0.90 |
| Jun 30, 2015 | 0.00 | 0.73 |
| Jun 30, 2014 | 0.33 | 0.54 |
| Jun 30, 2013 | 0.04 | 0.46 |
| Jun 30, 2012 | 0.00 | 0.44 |
| Jun 30, 2011 | 0.01 | 0.47 |
| Jun 30, 2010 | 0.01 | 0.46 |
| Jun 30, 2009 | 0.15 | 0.44 |
| Jun 30, 2008 | 0.01 | 0.56 |
| Jun 30, 2007 | 0.01 | 0.50 |
| Jun 30, 2006 | 0.01 | 0.31 |
| Jun 30, 2005 | 0.01 | 0.26 |
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), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Information Technology)
Automatic Data Processing Inc., debt to equity, long-term trends, comparison to industry (information technology)
| Automatic Data Processing Inc. | Information Technology | |
|---|---|---|
| Jun 30, 2021 | 0.53 | 0.82 |
| Jun 30, 2020 | 0.35 | 0.95 |
| Jun 30, 2019 | 0.42 | 0.97 |
| Jun 30, 2018 | 0.58 | 0.82 |
| Jun 30, 2017 | 0.50 | 0.80 |
| Jun 30, 2016 | 0.45 | 0.65 |
| Jun 30, 2015 | 0.00 | 0.56 |
| Jun 30, 2014 | 0.33 | 0.38 |
| Jun 30, 2013 | 0.04 | 0.28 |
| Jun 30, 2012 | 0.00 | 0.24 |
| Jun 30, 2011 | 0.01 | 0.27 |
| Jun 30, 2010 | 0.01 | 0.24 |
| Jun 30, 2009 | 0.15 | 0.25 |
| Jun 30, 2008 | 0.01 | 0.28 |
| Jun 30, 2007 | 0.01 | 0.26 |
| Jun 30, 2006 | 0.01 | 0.19 |
| Jun 30, 2005 | 0.01 | 0.15 |
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), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).