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 analysis of the financial data reveals significant fluctuations in total debt over the years. From 2005 through 2008, total debt remained relatively low and stable, ranging between approximately $34 million and $77 million. A notable spike occurred in 2009, with total debt increasing dramatically to over $772 million. After this peak, the debt level dropped sharply in 2010 and 2011 to lower levels, below $35 million, before experiencing extreme variability from 2012 onwards. There were particularly large increases in 2014 and subsequent years, with total debt reaching as high as $2.4 billion in certain years, reflecting substantial leverage changes and episodic borrowing or financing activities.
Stockholders' equity showed a general rising trend in the early years up to 2010, increasing from about $5.78 billion in 2005 to nearly $6.18 billion in 2013. However, from 2013 onwards, equity exhibited a declining pattern until 2018, dropping from over $6.18 billion to approximately $3.46 billion. A recovery trend is observed starting in 2019, with equity increasing again to over $5.75 billion by 2021. These equity fluctuations may correspond with strategic capital management decisions and retained earnings variations.
Examining the debt to equity ratio, it remained very low and nearly constant from 2005 to 2008, approximately 0.01, indicating minimal leverage and a strong equity base. A sharp rise occurred in 2009 to 0.15, reflecting the increase in total debt that year. Post-2009, the ratio dipped back to near zero in the early 2010s before escalating significantly from 2013 onwards. From 2013, the ratio rose from 0.04 to a peak of 0.58 in 2018, evidencing increased leverage risk and higher reliance on debt financing. Recently, the ratio showed variability, decreasing to 0.35 in 2020 and then increasing to 0.53 in 2021, indicating ongoing fluctuations in the company's capital structure.
Overall, the data indicates a period of low leverage and steady equity growth through the mid-2000s, followed by sharp increases in debt and volatility in both debt and equity from around 2009 onwards. The increasing debt to equity ratio in recent years suggests that the company has shifted towards a more leveraged financial strategy, possibly to support growth initiatives or other capital-intensive activities. The swings in both total debt and equity levels imply active financial management and potentially adjustments to respond to market conditions or strategic objectives.
Comparison to Competitors
Automatic Data Processing Inc., debt to equity, long-term trends, comparison to competitors
| Automatic Data Processing Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | 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 | 0.13 | 0.85 | — | 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 | 0.00 | 2.52 | 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 | — | 2.85 | 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 | — | 2.90 | 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 | — | 1.42 | 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 | — | 1.28 | 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 | — | 1.39 | 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 | — | 1.20 | 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 | — | 0.89 | 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 | — | 1.06 | 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 | — | 1.10 | 1.56 | 0.38 | 0.21 | 0.40 | — | — | 0.38 | — | 0.00 | — |
| Jun 30, 2010 | 0.01 | 0.00 | 0.29 | 1.99 | — | 1.09 | 1.24 | 0.35 | 0.13 | 0.48 | — | — | 0.45 | — | 0.00 | — |
| Jun 30, 2009 | 0.15 | 0.00 | 0.20 | 4.02 | — | 0.95 | 1.15 | 0.39 | 0.15 | 0.41 | — | — | 0.01 | — | 0.00 | — |
| Jun 30, 2008 | 0.01 | 0.00 | 0.08 | 4.91 | — | 1.01 | 2.52 | 0.48 | 0.00 | 0.49 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2007 | 0.01 | 0.01 | 0.00 | 0.35 | — | 0.99 | 1.24 | 0.49 | 0.00 | 0.45 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2006 | 0.01 | 0.03 | 0.00 | 0.45 | — | 0.52 | 0.80 | 0.00 | 0.00 | 0.39 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2005 | 0.01 | 0.04 | 0.00 | 0.31 | — | 0.50 | 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 | 1.08 |
| 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 | 0.45 |
| 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 | 0.83 |
| Jun 30, 2020 | 0.35 | 0.97 |
| Jun 30, 2019 | 0.42 | 0.98 |
| Jun 30, 2018 | 0.58 | 0.83 |
| Jun 30, 2017 | 0.50 | 0.81 |
| Jun 30, 2016 | 0.45 | 0.66 |
| Jun 30, 2015 | 0.00 | 0.56 |
| Jun 30, 2014 | 0.33 | 0.39 |
| Jun 30, 2013 | 0.04 | 0.29 |
| Jun 30, 2012 | 0.00 | 0.25 |
| Jun 30, 2011 | 0.01 | 0.27 |
| Jun 30, 2010 | 0.01 | 0.25 |
| Jun 30, 2009 | 0.15 | 0.26 |
| Jun 30, 2008 | 0.01 | 0.29 |
| Jun 30, 2007 | 0.01 | 0.27 |
| Jun 30, 2006 | 0.01 | 0.20 |
| 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).