Adjusted Financial Ratios (Summary)
Adjusted Total Asset Turnover
Adjusted Current Ratio
Adjusted Debt to Equity
Adjusted Debt to Capital
Adjusted Financial Leverage
Adjusted Net Profit Margin
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Automatic Data Processing Inc., adjusted financial ratios

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Activity Ratio
Total Asset Turnover
Reported	0.31	0.37	0.34	0.36	0.33	0.27
Adjusted	0.31	0.37	0.33	0.35	0.33	0.27
Liquidity Ratio
Current Ratio
Reported	1.07	1.05	1.05	1.05	1.10	1.10
Adjusted	1.08	1.06	1.06	1.06	1.11	1.11
Solvency Ratios
Debt to Equity
Reported	0.53	0.35	0.42	0.58	0.50	0.45
Adjusted	0.51	0.35	0.42	0.60	0.51	0.46
Debt to Capital
Reported	0.35	0.26	0.30	0.37	0.33	0.31
Adjusted	0.34	0.26	0.30	0.38	0.34	0.32
Financial Leverage
Reported	8.60	6.81	7.76	10.72	9.35	9.74
Adjusted	7.23	5.51	6.36	9.08	7.96	8.34
Profitability Ratios
Net Profit Margin
Reported	17.32%	16.91%	16.17%	12.16%	14.00%	12.79%
Adjusted	15.63%	18.80%	18.94%	10.10%	12.90%	13.39%
Return on Equity (ROE)
Reported	45.83%	42.88%	42.46%	46.85%	43.59%	33.30%
Adjusted	34.71%	38.42%	40.09%	32.52%	33.87%	29.62%
Return on Assets (ROA)
Reported	5.33%	6.30%	5.47%	4.37%	4.66%	3.42%
Adjusted	4.80%	6.98%	6.30%	3.58%	4.26%	3.55%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Automatic Data Processing Inc. adjusted total asset turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Automatic Data Processing Inc. adjusted current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Automatic Data Processing Inc. adjusted debt-to-equity ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Automatic Data Processing Inc. adjusted debt-to-capital ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Automatic Data Processing Inc. adjusted financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Automatic Data Processing Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Automatic Data Processing Inc. adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Automatic Data Processing Inc. adjusted ROA improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Automatic Data Processing Inc., Financial Ratios: Reported vs. Adjusted

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	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Reported
Selected Financial Data (US$ in thousands)
Revenues	15,005,400)	14,589,800)	14,175,200)	13,325,800)	12,379,800)	11,667,800)
Total assets	48,772,500)	39,165,500)	41,887,700)	37,088,700)	37,180,000)	43,670,000)
Activity Ratio
Total asset turnover¹	0.31	0.37	0.34	0.36	0.33	0.27
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted revenues²	14,988,600)	14,552,900)	14,121,400)	13,305,800)	12,389,800)	11,690,800)
Adjusted total assets³	48,803,800)	39,219,200)	42,421,458)	37,534,594)	37,564,636)	44,053,408)
Activity Ratio
Adjusted total asset turnover⁴	0.31	0.37	0.33	0.35	0.33	0.27

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).

¹ 2021 Calculation
Total asset turnover = Revenues ÷ Total assets
= 15,005,400 ÷ 48,772,500 = 0.31

² Adjusted revenues. See details »

³ Adjusted total assets. See details »

⁴ 2021 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 14,988,600 ÷ 48,803,800 = 0.31

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Automatic Data Processing Inc. adjusted total asset turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Reported
Selected Financial Data (US$ in thousands)
Current assets	40,741,800)	31,564,100)	34,342,300)	32,050,000)	32,658,700)	39,500,400)
Current liabilities	38,094,800)	30,126,600)	32,627,700)	30,413,600)	29,815,900)	35,847,400)
Liquidity Ratio
Current ratio¹	1.07	1.05	1.05	1.05	1.10	1.10
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted current assets²	40,821,400)	31,656,600)	34,397,200)	32,101,300)	32,708,300)	39,538,500)
Adjusted current liabilities³	37,890,900)	29,914,100)	32,407,000)	30,187,100)	29,583,000)	35,614,200)
Liquidity Ratio
Adjusted current ratio⁴	1.08	1.06	1.06	1.06	1.11	1.11

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).

¹ 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 40,741,800 ÷ 38,094,800 = 1.07

² Adjusted current assets. See details »

³ Adjusted current liabilities. See details »

⁴ 2021 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 40,821,400 ÷ 37,890,900 = 1.08

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Automatic Data Processing Inc. adjusted current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Reported
Selected Financial Data (US$ in thousands)
Total debt	3,008,500)	2,018,200)	2,264,200)	2,002,400)	2,002,400)	2,007,700)
Stockholders’ equity	5,670,100)	5,752,200)	5,399,900)	3,459,600)	3,977,000)	4,481,600)
Solvency Ratio
Debt to equity¹	0.53	0.35	0.42	0.58	0.50	0.45
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt²	3,446,400)	2,458,100)	2,807,058)	2,487,094)	2,430,836)	2,453,308)
Adjusted stockholders’ equity³	6,750,700)	7,121,000)	6,670,700)	4,132,400)	4,720,600)	5,284,800)
Solvency Ratio
Adjusted debt to equity⁴	0.51	0.35	0.42	0.60	0.51	0.46

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).

¹ 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 3,008,500 ÷ 5,670,100 = 0.53

² Adjusted total debt. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2021 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 3,446,400 ÷ 6,750,700 = 0.51

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Solvency ratio	Description	The company
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Automatic Data Processing Inc. adjusted debt-to-equity ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Reported
Selected Financial Data (US$ in thousands)
Total debt	3,008,500)	2,018,200)	2,264,200)	2,002,400)	2,002,400)	2,007,700)
Total capital	8,678,600)	7,770,400)	7,664,100)	5,462,000)	5,979,400)	6,489,300)
Solvency Ratio
Debt to capital¹	0.35	0.26	0.30	0.37	0.33	0.31
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt²	3,446,400)	2,458,100)	2,807,058)	2,487,094)	2,430,836)	2,453,308)
Adjusted total capital³	10,197,100)	9,579,100)	9,477,758)	6,619,494)	7,151,436)	7,738,108)
Solvency Ratio
Adjusted debt to capital⁴	0.34	0.26	0.30	0.38	0.34	0.32

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).

¹ 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 3,008,500 ÷ 8,678,600 = 0.35

² Adjusted total debt. See details »

³ Adjusted total capital. See details »

⁴ 2021 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 3,446,400 ÷ 10,197,100 = 0.34

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Solvency ratio	Description	The company
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Automatic Data Processing Inc. adjusted debt-to-capital ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Reported
Selected Financial Data (US$ in thousands)
Total assets	48,772,500)	39,165,500)	41,887,700)	37,088,700)	37,180,000)	43,670,000)
Stockholders’ equity	5,670,100)	5,752,200)	5,399,900)	3,459,600)	3,977,000)	4,481,600)
Solvency Ratio
Financial leverage¹	8.60	6.81	7.76	10.72	9.35	9.74
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets²	48,803,800)	39,219,200)	42,421,458)	37,534,594)	37,564,636)	44,053,408)
Adjusted stockholders’ equity³	6,750,700)	7,121,000)	6,670,700)	4,132,400)	4,720,600)	5,284,800)
Solvency Ratio
Adjusted financial leverage⁴	7.23	5.51	6.36	9.08	7.96	8.34

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).

¹ 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 48,772,500 ÷ 5,670,100 = 8.60

² Adjusted total assets. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2021 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 48,803,800 ÷ 6,750,700 = 7.23

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Automatic Data Processing Inc. adjusted financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Reported
Selected Financial Data (US$ in thousands)
Net earnings	2,598,500)	2,466,500)	2,292,800)	1,620,800)	1,733,400)	1,492,500)
Revenues	15,005,400)	14,589,800)	14,175,200)	13,325,800)	12,379,800)	11,667,800)
Profitability Ratio
Net profit margin¹	17.32%	16.91%	16.17%	12.16%	14.00%	12.79%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net earnings²	2,343,100)	2,735,700)	2,674,400)	1,343,700)	1,598,900)	1,565,200)
Adjusted revenues³	14,988,600)	14,552,900)	14,121,400)	13,305,800)	12,389,800)	11,690,800)
Profitability Ratio
Adjusted net profit margin⁴	15.63%	18.80%	18.94%	10.10%	12.90%	13.39%

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).

¹ 2021 Calculation
Net profit margin = 100 × Net earnings ÷ Revenues
= 100 × 2,598,500 ÷ 15,005,400 = 17.32%

² Adjusted net earnings. See details »

³ Adjusted revenues. See details »

⁴ 2021 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Adjusted revenues
= 100 × 2,343,100 ÷ 14,988,600 = 15.63%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Automatic Data Processing Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Reported
Selected Financial Data (US$ in thousands)
Net earnings	2,598,500)	2,466,500)	2,292,800)	1,620,800)	1,733,400)	1,492,500)
Stockholders’ equity	5,670,100)	5,752,200)	5,399,900)	3,459,600)	3,977,000)	4,481,600)
Profitability Ratio
ROE¹	45.83%	42.88%	42.46%	46.85%	43.59%	33.30%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net earnings²	2,343,100)	2,735,700)	2,674,400)	1,343,700)	1,598,900)	1,565,200)
Adjusted stockholders’ equity³	6,750,700)	7,121,000)	6,670,700)	4,132,400)	4,720,600)	5,284,800)
Profitability Ratio
Adjusted ROE⁴	34.71%	38.42%	40.09%	32.52%	33.87%	29.62%

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).

¹ 2021 Calculation
ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 2,598,500 ÷ 5,670,100 = 45.83%

² Adjusted net earnings. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2021 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted stockholders’ equity
= 100 × 2,343,100 ÷ 6,750,700 = 34.71%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Automatic Data Processing Inc. adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Reported
Selected Financial Data (US$ in thousands)
Net earnings	2,598,500)	2,466,500)	2,292,800)	1,620,800)	1,733,400)	1,492,500)
Total assets	48,772,500)	39,165,500)	41,887,700)	37,088,700)	37,180,000)	43,670,000)
Profitability Ratio
ROA¹	5.33%	6.30%	5.47%	4.37%	4.66%	3.42%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net earnings²	2,343,100)	2,735,700)	2,674,400)	1,343,700)	1,598,900)	1,565,200)
Adjusted total assets³	48,803,800)	39,219,200)	42,421,458)	37,534,594)	37,564,636)	44,053,408)
Profitability Ratio
Adjusted ROA⁴	4.80%	6.98%	6.30%	3.58%	4.26%	3.55%

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).

¹ 2021 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 2,598,500 ÷ 48,772,500 = 5.33%

² Adjusted net earnings. See details »

³ Adjusted total assets. See details »

⁴ 2021 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 2,343,100 ÷ 48,803,800 = 4.80%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Automatic Data Processing Inc. adjusted ROA improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Automatic Data Processing Inc. (NASDAQ:ADP)

Adjusted Financial Ratios

Adjusted Financial Ratios (Summary)

Automatic Data Processing Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Current Ratio

Adjusted Debt to Equity

Adjusted Debt to Capital

Adjusted Financial Leverage

Adjusted Net Profit Margin

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)