Net Profit Margin
since 2005
Calculation
Automatic Data Processing Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net earnings1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2021 | 17.32% | = | 100 | × | 2,598,500) | ÷ | 15,005,400) |
| Jun 30, 2020 | 16.91% | = | 100 | × | 2,466,500) | ÷ | 14,589,800) |
| Jun 30, 2019 | 16.17% | = | 100 | × | 2,292,800) | ÷ | 14,175,200) |
| Jun 30, 2018 | 12.16% | = | 100 | × | 1,620,800) | ÷ | 13,325,800) |
| Jun 30, 2017 | 14.00% | = | 100 | × | 1,733,400) | ÷ | 12,379,800) |
| Jun 30, 2016 | 12.79% | = | 100 | × | 1,492,500) | ÷ | 11,667,800) |
| Jun 30, 2015 | 13.28% | = | 100 | × | 1,452,500) | ÷ | 10,938,500) |
| Jun 30, 2014 | 12.42% | = | 100 | × | 1,515,900) | ÷ | 12,206,500) |
| Jun 30, 2013 | 12.43% | = | 100 | × | 1,405,800) | ÷ | 11,310,100) |
| Jun 30, 2012 | 13.02% | = | 100 | × | 1,388,500) | ÷ | 10,665,200) |
| Jun 30, 2011 | 12.69% | = | 100 | × | 1,254,200) | ÷ | 9,879,500) |
| Jun 30, 2010 | 13.57% | = | 100 | × | 1,211,400) | ÷ | 8,927,700) |
| Jun 30, 2009 | 15.03% | = | 100 | × | 1,332,600) | ÷ | 8,867,100) |
| Jun 30, 2008 | 14.08% | = | 100 | × | 1,235,700) | ÷ | 8,776,500) |
| Jun 30, 2007 | 14.60% | = | 100 | × | 1,138,700) | ÷ | 7,800,000) |
| Jun 30, 2006 | 17.50% | = | 100 | × | 1,554,000) | ÷ | 8,881,500) |
| Jun 30, 2005 | 12.42% | = | 100 | × | 1,055,400) | ÷ | 8,499,100) |
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 performance from 2005 to 2021 is characterized by a consistent long-term expansion in both top-line revenue and bottom-line net earnings, accompanied by a fluctuating but ultimately improving net profit margin.
- Revenue and Earnings Growth
- Total revenues increased from approximately 8.5 billion US dollars in 2005 to over 15 billion US dollars by 2021. During this same period, net earnings grew from 1.05 billion US dollars to approximately 2.6 billion US dollars. A notable acceleration in net earnings is observed between 2018 and 2019, where earnings rose from 1.62 billion US dollars to 2.29 billion US dollars.
- Net Profit Margin Trends
- The net profit margin exhibited significant volatility in the early years, peaking at 17.50% in 2006 before retreating. Between 2007 and 2018, the margin remained relatively stable, generally oscillating within a corridor between 12% and 15%. The lowest margin during this period was recorded in 2018 at 12.16%.
- Recent Profitability Acceleration
- A strong upward trend in profitability emerged starting in 2019. The net profit margin climbed from 12.16% in 2018 to 16.17% in 2019, continuing its ascent to 17.32% by 2021. This recent trajectory indicates an improvement in operational efficiency and a greater capacity to convert revenue into actual profit compared to the preceding decade.
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Comparison to Competitors
Automatic Data Processing Inc., net profit margin, 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 | 17.32% | 11.69% | 30.55% | 1.27% | 23.29% | -2.02% | 10.01% | 21.41% | 36.45% | 33.96% | -33.75% | -11.72% | 19.16% | 3.90% | 18.02% | -6.54% |
| Jun 30, 2020 | 16.91% | 11.52% | 40.88% | — | 22.02% | -4.07% | 7.59% | 23.78% | 30.96% | 25.94% | -106.75% | -7.83% | 0.74% | 2.62% | 18.03% | -13.25% |
| Jun 30, 2019 | 16.17% | 11.06% | 26.42% | — | 42.33% | -4.61% | 12.22% | 22.95% | 31.18% | 28.05% | — | -2.82% | 8.36% | 18.11% | 15.84% | -14.82% |
| Jun 30, 2018 | 12.16% | 9.76% | 28.69% | — | 16.17% | — | 10.97% | 20.31% | 15.02% | 9.60% | — | -6.51% | 1.22% | -1.02% | 13.86% | -14.99% |
| Jun 30, 2017 | 14.00% | 9.37% | 23.20% | — | 10.50% | — | 7.27% | 18.76% | 23.57% | 24.74% | — | -12.30% | 2.14% | -7.71% | 5.01% | -26.01% |
| Jun 30, 2016 | 12.79% | 11.82% | 19.96% | — | 11.18% | — | 14.86% | 20.86% | 19.69% | 24.03% | — | -16.39% | -0.71% | -32.49% | 11.01% | -24.94% |
| Jun 30, 2015 | 13.28% | 9.28% | 13.13% | — | 14.83% | — | 16.14% | 8.71% | 13.03% | 26.00% | — | -17.78% | -4.89% | -19.73% | 10.08% | -31.48% |
| Jun 30, 2014 | 12.42% | 9.23% | 6.47% | — | 10.05% | — | 12.96% | 20.13% | 25.42% | 28.62% | — | -37.86% | -5.70% | -26.28% | 12.59% | -36.79% |
| Jun 30, 2013 | 12.43% | 10.80% | 7.15% | — | 11.25% | — | 16.52% | 20.57% | 28.08% | 29.38% | — | -7.38% | -8.87% | -17.36% | 12.63% | -43.55% |
| Jun 30, 2012 | 13.02% | 8.58% | 18.91% | — | 33.17% | — | 15.89% | 19.08% | 23.03% | 26.89% | — | 0.29% | -0.51% | -15.32% | 10.39% | — |
| Jun 30, 2011 | 12.69% | 8.33% | 19.75% | — | 6.28% | — | 14.83% | 16.46% | 33.10% | 23.99% | — | — | 3.89% | — | 14.42% | — |
| Jun 30, 2010 | 13.57% | 7.71% | 20.39% | — | 13.52% | — | 14.85% | 16.61% | 30.02% | 22.87% | — | — | 6.18% | — | 17.17% | — |
| Jun 30, 2009 | 15.03% | 6.86% | 13.12% | — | -17.58% | — | 14.02% | 14.05% | 24.93% | 24.05% | — | — | 4.03% | — | 12.33% | — |
| Jun 30, 2008 | 14.08% | 6.68% | 24.35% | — | -178.51% | — | 11.90% | 15.52% | 29.26% | 24.61% | — | — | 2.45% | — | 14.21% | — |
| Jun 30, 2007 | 14.60% | 5.79% | 22.92% | — | 18.34% | — | 10.55% | 16.46% | 27.51% | 23.75% | — | — | 0.10% | — | 10.76% | — |
| Jun 30, 2006 | 17.50% | 5.34% | 19.64% | — | 9.61% | — | 10.38% | 17.80% | 28.45% | 23.51% | — | — | 9.19% | — | 2.26% | — |
| Jun 30, 2005 | 12.42% | 5.50% | 30.66% | — | 3.71% | — | 8.71% | 18.73% | 30.80% | 24.46% | — | — | 4.16% | — | -1.56% | — |
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., net profit margin, long-term trends, comparison to sector (software & services)
| Automatic Data Processing Inc. | Software & Services | |
|---|---|---|
| Jun 30, 2021 | 17.32% | 25.12% |
| Jun 30, 2020 | 16.91% | 20.08% |
| Jun 30, 2019 | 16.17% | 21.61% |
| Jun 30, 2018 | 12.16% | 12.10% |
| Jun 30, 2017 | 14.00% | 15.36% |
| Jun 30, 2016 | 12.79% | 16.49% |
| Jun 30, 2015 | 13.28% | 14.57% |
| Jun 30, 2014 | 12.42% | 18.21% |
| Jun 30, 2013 | 12.43% | 20.55% |
| Jun 30, 2012 | 13.02% | 18.62% |
| Jun 30, 2011 | 12.69% | 20.48% |
| Jun 30, 2010 | 13.57% | 19.41% |
| Jun 30, 2009 | 15.03% | 17.17% |
| Jun 30, 2008 | 14.08% | 16.67% |
| Jun 30, 2007 | 14.60% | 15.91% |
| Jun 30, 2006 | 17.50% | 15.65% |
| Jun 30, 2005 | 12.42% | 15.06% |
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., net profit margin, long-term trends, comparison to industry (information technology)
| Automatic Data Processing Inc. | Information Technology | |
|---|---|---|
| Jun 30, 2021 | 17.32% | 23.48% |
| Jun 30, 2020 | 16.91% | 19.76% |
| Jun 30, 2019 | 16.17% | 19.73% |
| Jun 30, 2018 | 12.16% | 18.59% |
| Jun 30, 2017 | 14.00% | 17.77% |
| Jun 30, 2016 | 12.79% | 17.58% |
| Jun 30, 2015 | 13.28% | 18.32% |
| Jun 30, 2014 | 12.42% | 19.33% |
| Jun 30, 2013 | 12.43% | 20.15% |
| Jun 30, 2012 | 13.02% | 20.07% |
| Jun 30, 2011 | 12.69% | 20.71% |
| Jun 30, 2010 | 13.57% | 20.19% |
| Jun 30, 2009 | 15.03% | 14.45% |
| Jun 30, 2008 | 14.08% | 15.07% |
| Jun 30, 2007 | 14.60% | 15.71% |
| Jun 30, 2006 | 17.50% | 16.26% |
| Jun 30, 2005 | 12.42% | 16.64% |
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).