Return on Assets (ROA)
since 2005
Calculation
Automatic Data Processing Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2021 | 5.33% | = | 100 | × | 2,598,500) | ÷ | 48,772,500) |
| Jun 30, 2020 | 6.30% | = | 100 | × | 2,466,500) | ÷ | 39,165,500) |
| Jun 30, 2019 | 5.47% | = | 100 | × | 2,292,800) | ÷ | 41,887,700) |
| Jun 30, 2018 | 4.37% | = | 100 | × | 1,620,800) | ÷ | 37,088,700) |
| Jun 30, 2017 | 4.66% | = | 100 | × | 1,733,400) | ÷ | 37,180,000) |
| Jun 30, 2016 | 3.42% | = | 100 | × | 1,492,500) | ÷ | 43,670,000) |
| Jun 30, 2015 | 4.39% | = | 100 | × | 1,452,500) | ÷ | 33,110,500) |
| Jun 30, 2014 | 4.73% | = | 100 | × | 1,515,900) | ÷ | 32,051,700) |
| Jun 30, 2013 | 4.36% | = | 100 | × | 1,405,800) | ÷ | 32,268,100) |
| Jun 30, 2012 | 4.51% | = | 100 | × | 1,388,500) | ÷ | 30,815,500) |
| Jun 30, 2011 | 3.66% | = | 100 | × | 1,254,200) | ÷ | 34,238,300) |
| Jun 30, 2010 | 4.51% | = | 100 | × | 1,211,400) | ÷ | 26,862,200) |
| Jun 30, 2009 | 5.26% | = | 100 | × | 1,332,600) | ÷ | 25,351,700) |
| Jun 30, 2008 | 5.21% | = | 100 | × | 1,235,700) | ÷ | 23,734,400) |
| Jun 30, 2007 | 4.27% | = | 100 | × | 1,138,700) | ÷ | 26,648,900) |
| Jun 30, 2006 | 5.65% | = | 100 | × | 1,554,000) | ÷ | 27,490,100) |
| Jun 30, 2005 | 3.82% | = | 100 | × | 1,055,400) | ÷ | 27,615,400) |
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 general upward trajectory in net earnings and a significant expansion of the total asset base, resulting in a fluctuating but resilient Return on Assets (ROA).
- Net Earnings Growth
- Net earnings exhibited steady growth over the 16-year period, rising from 1,055,400 thousand US$ in 2005 to 2,598,500 thousand US$ in 2021. A period of relative stability occurred between 2007 and 2015, with earnings generally fluctuating between 1.1 billion and 1.5 billion US$. A more pronounced acceleration in profitability began after 2016, culminating in a peak of approximately 2.6 billion US$ by the end of the analyzed period.
- Total Asset Expansion
- The total asset base underwent substantial expansion, increasing from 27,615,400 thousand US$ in 2005 to 48,772,500 thousand US$ in 2021. While the asset levels remained relatively stable below 35 billion US$ until 2011, a significant increase is noted starting in 2016, where assets reached 43,670,000 thousand US$. This indicates a significant growth in the company's resource base to support its operational scale.
- Return on Assets (ROA) Dynamics
- The ROA demonstrates cyclical volatility, ranging from a low of 3.42% in 2016 to a peak of 6.30% in 2020. An inverse correlation is observable in 2016, where a sharp increase in total assets coincided with the period's lowest ROA, suggesting that asset growth initially outpaced earnings growth. However, a strong recovery followed, with ROA climbing steadily from 2017 to 2020. The efficiency of asset utilization reached its highest point in 2020, although a slight contraction to 5.33% occurred in 2021, aligning with another increase in the total asset base.
Overall, the data indicates that while the company has aggressively expanded its asset base, it has successfully scaled its net earnings to maintain and eventually improve its asset utilization efficiency over the long term.
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Comparison to Competitors
Automatic Data Processing Inc., ROA, 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 | 5.33% | 13.68% | 17.70% | 0.58% | 15.87% | -0.87% | 4.35% | 13.29% | 18.36% | 10.48% | -16.02% | -4.87% | 6.14% | 2.13% | 8.66% | -3.24% |
| Jun 30, 2020 | 6.30% | 13.78% | 21.66% | — | 14.95% | -1.30% | 3.58% | 16.70% | 14.70% | 8.78% | -43.35% | -2.95% | 0.23% | 1.36% | 8.27% | -7.05% |
| Jun 30, 2019 | 5.47% | 16.04% | 14.22% | — | 29.46% | -1.61% | 6.20% | 24.78% | 13.69% | 10.20% | — | -1.24% | 3.61% | 10.41% | 8.31% | -7.58% |
| Jun 30, 2018 | 4.37% | 16.61% | 13.80% | — | 14.01% | — | 7.07% | 23.39% | 6.40% | 2.79% | — | -2.54% | 0.61% | -0.69% | 7.04% | -6.49% |
| Jun 30, 2017 | 4.66% | 15.18% | 11.65% | — | 8.44% | — | 4.59% | 23.87% | 8.80% | 6.92% | — | -6.30% | 1.02% | -4.39% | 2.53% | -12.89% |
| Jun 30, 2016 | 3.42% | 19.95% | 9.20% | — | 9.69% | — | 10.11% | 23.04% | 8.67% | 7.93% | — | -8.18% | -0.37% | -22.22% | 5.09% | -10.62% |
| Jun 30, 2015 | 4.39% | 16.72% | 5.37% | — | 10.74% | — | 11.94% | 7.35% | 6.92% | 8.96% | — | -8.40% | -2.46% | -10.98% | 4.48% | -10.51% |
| Jun 30, 2014 | 4.73% | 16.41% | 2.49% | — | 4.95% | — | 10.23% | 17.44% | 12.81% | 12.13% | — | -15.32% | -2.54% | -12.59% | 5.43% | -7.93% |
| Jun 30, 2013 | 4.36% | 19.46% | 2.79% | — | 6.76% | — | 13.06% | 15.64% | 15.35% | 13.35% | — | -4.99% | -4.89% | -6.31% | 5.68% | -12.43% |
| Jun 30, 2012 | 4.51% | 15.32% | 8.35% | — | 19.24% | — | 13.93% | 16.91% | 14.00% | 12.74% | — | 0.18% | -0.28% | -7.81% | 4.40% | — |
| Jun 30, 2011 | 3.66% | 14.48% | 9.26% | — | 4.10% | — | 13.62% | 12.41% | 21.30% | 11.62% | — | — | 2.09% | — | 6.57% | — |
| Jun 30, 2010 | 4.51% | 13.87% | 9.52% | — | 7.31% | — | 13.07% | 11.04% | 21.79% | 9.96% | — | — | 3.28% | — | 7.21% | — |
| Jun 30, 2009 | 5.26% | 12.97% | 5.31% | — | -10.62% | — | 12.31% | 9.26% | 18.71% | 11.80% | — | — | 2.93% | — | 5.71% | — |
| Jun 30, 2008 | 5.21% | 13.64% | 14.98% | — | -110.44% | — | 11.26% | 10.22% | 24.29% | 11.68% | — | — | 1.68% | — | 6.93% | — |
| Jun 30, 2007 | 4.27% | 11.57% | 12.67% | — | 7.65% | — | 8.65% | 10.35% | 22.26% | 12.36% | — | — | 0.07% | — | 4.99% | — |
| Jun 30, 2006 | 5.65% | 10.33% | 8.48% | — | 4.14% | — | 9.19% | 15.05% | 18.10% | 11.65% | — | — | 6.55% | — | 1.15% | — |
| Jun 30, 2005 | 3.82% | 10.50% | 24.70% | — | 1.45% | — | 7.50% | 14.05% | 17.30% | 13.95% | — | — | 2.62% | — | -0.72% | — |
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., ROA, long-term trends, comparison to sector (software & services)
| Automatic Data Processing Inc. | Software & Services | |
|---|---|---|
| Jun 30, 2021 | 5.33% | 12.19% |
| Jun 30, 2020 | 6.30% | 9.68% |
| Jun 30, 2019 | 5.47% | 10.81% |
| Jun 30, 2018 | 4.37% | 6.11% |
| Jun 30, 2017 | 4.66% | 7.29% |
| Jun 30, 2016 | 3.42% | 8.86% |
| Jun 30, 2015 | 4.39% | 8.53% |
| Jun 30, 2014 | 4.73% | 11.18% |
| Jun 30, 2013 | 4.36% | 13.46% |
| Jun 30, 2012 | 4.51% | 13.36% |
| Jun 30, 2011 | 3.66% | 15.34% |
| Jun 30, 2010 | 4.51% | 14.69% |
| Jun 30, 2009 | 5.26% | 13.64% |
| Jun 30, 2008 | 5.21% | 14.32% |
| Jun 30, 2007 | 4.27% | 12.84% |
| Jun 30, 2006 | 5.65% | 12.19% |
| Jun 30, 2005 | 3.82% | 11.53% |
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., ROA, long-term trends, comparison to industry (information technology)
| Automatic Data Processing Inc. | Information Technology | |
|---|---|---|
| Jun 30, 2021 | 5.33% | 14.52% |
| Jun 30, 2020 | 6.30% | 11.46% |
| Jun 30, 2019 | 5.47% | 11.67% |
| Jun 30, 2018 | 4.37% | 10.94% |
| Jun 30, 2017 | 4.66% | 9.00% |
| Jun 30, 2016 | 3.42% | 9.68% |
| Jun 30, 2015 | 4.39% | 11.51% |
| Jun 30, 2014 | 4.73% | 12.33% |
| Jun 30, 2013 | 4.36% | 13.22% |
| Jun 30, 2012 | 4.51% | 14.06% |
| Jun 30, 2011 | 3.66% | 15.11% |
| Jun 30, 2010 | 4.51% | 14.45% |
| Jun 30, 2009 | 5.26% | 10.04% |
| Jun 30, 2008 | 5.21% | 11.87% |
| Jun 30, 2007 | 4.27% | 11.93% |
| Jun 30, 2006 | 5.65% | 12.20% |
| Jun 30, 2005 | 3.82% | 12.71% |
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).