Stock Analysis on Net
Stock Analysis on Net

Automatic Data Processing Inc. (NASDAQ:ADP)

This company has been moved to the archive! The financial data has not been updated since April 29, 2022.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Automatic Data Processing Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2022 68.25% = 3.97% × 17.19
Dec 31, 2021 54.34% = 4.64% × 11.70
Sep 30, 2021 50.40% = 4.50% × 11.21
Jun 30, 2021 45.83% = 5.33% × 8.60
Mar 31, 2021 43.57% = 4.54% × 9.59
Dec 31, 2020 42.07% = 5.03% × 8.36
Sep 30, 2020 42.80% = 5.87% × 7.30
Jun 30, 2020 42.88% = 6.30% × 6.81
Mar 31, 2020 46.09% = 5.83% × 7.90
Dec 31, 2019 45.92% = 5.02% × 9.15
Sep 30, 2019 44.21% = 6.28% × 7.04
Jun 30, 2019 42.46% = 5.47% × 7.76
Mar 31, 2019 36.71% = 4.00% × 9.19
Dec 31, 2018 38.11% = 4.68% × 8.15
Sep 30, 2018 36.86% = 4.61% × 8.00
Jun 30, 2018 46.85% = 4.37% × 10.72
Mar 31, 2018 44.13% = 4.03% × 10.94
Dec 31, 2017 43.82% = 3.87% × 11.33
Sep 30, 2017 44.68% = 4.95% × 9.02
Jun 30, 2017 43.59% = 4.66% × 9.35
Mar 31, 2017 42.64% = 3.99% × 10.69
Dec 31, 2016 44.41% = 4.24% × 10.48
Sep 30, 2016 35.87% = 4.44% × 8.08
Jun 30, 2016 33.30% = 3.42% × 9.74
Mar 31, 2016 — = — × 11.35
Dec 31, 2015 — = — × 9.49
Sep 30, 2015 — = — × 7.43

Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2022 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Automatic Data Processing Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2022 68.25% = 17.77% × 0.22 × 17.19
Dec 31, 2021 54.34% = 17.48% × 0.27 × 11.70
Sep 30, 2021 50.40% = 17.55% × 0.26 × 11.21
Jun 30, 2021 45.83% = 17.32% × 0.31 × 8.60
Mar 31, 2021 43.57% = 16.88% × 0.27 × 9.59
Dec 31, 2020 42.07% = 17.01% × 0.30 × 8.36
Sep 30, 2020 42.80% = 17.07% × 0.34 × 7.30
Jun 30, 2020 42.88% = 16.91% × 0.37 × 6.81
Mar 31, 2020 46.09% = 17.20% × 0.34 × 7.90
Dec 31, 2019 45.92% = 16.97% × 0.30 × 9.15
Sep 30, 2019 44.21% = 16.52% × 0.38 × 7.04
Jun 30, 2019 42.46% = 16.17% × 0.34 × 7.76
Mar 31, 2019 36.71% = 13.76% × 0.29 × 9.19
Dec 31, 2018 38.11% = 13.12% × 0.36 × 8.15
Sep 30, 2018 36.86% = 12.71% × 0.36 × 8.00
Jun 30, 2018 46.85% = 12.16% × 0.36 × 10.72
Mar 31, 2018 44.13% = 13.60% × 0.30 × 10.94
Dec 31, 2017 43.82% = 13.47% × 0.29 × 11.33
Sep 30, 2017 44.68% = 14.08% × 0.35 × 9.02
Jun 30, 2017 43.59% = 14.00% × 0.33 × 9.35
Mar 31, 2017 42.64% = 14.32% × 0.28 × 10.69
Dec 31, 2016 44.41% = 14.06% × 0.30 × 10.48
Sep 30, 2016 35.87% = 12.84% × 0.35 × 8.08
Jun 30, 2016 33.30% = 12.79% × 0.27 × 9.74
Mar 31, 2016 — = — × — × 11.35
Dec 31, 2015 — = — × — × 9.49
Sep 30, 2015 — = — × — × 7.43

Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2022 is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

Automatic Data Processing Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2022 68.25% = 0.77 × 0.98 × 23.41% × 0.22 × 17.19
Dec 31, 2021 54.34% = 0.77 × 0.98 × 23.20% × 0.27 × 11.70
Sep 30, 2021 50.40% = 0.77 × 0.98 × 23.17% × 0.26 × 11.21
Jun 30, 2021 45.83% = 0.77 × 0.98 × 22.80% × 0.31 × 8.60
Mar 31, 2021 43.57% = 0.77 × 0.98 × 22.21% × 0.27 × 9.59
Dec 31, 2020 42.07% = 0.77 × 0.98 × 22.41% × 0.30 × 8.36
Sep 30, 2020 42.80% = 0.77 × 0.97 × 22.60% × 0.34 × 7.30
Jun 30, 2020 42.88% = 0.77 × 0.97 × 22.55% × 0.37 × 6.81
Mar 31, 2020 46.09% = 0.77 × 0.96 × 23.18% × 0.34 × 7.90
Dec 31, 2019 45.92% = 0.77 × 0.96 × 22.87% × 0.30 × 9.15
Sep 30, 2019 44.21% = 0.76 × 0.96 × 22.52% × 0.38 × 7.04
Jun 30, 2019 42.46% = 0.76 × 0.96 × 22.12% × 0.34 × 7.76
Mar 31, 2019 36.71% = 0.75 × 0.95 × 19.30% × 0.29 × 9.19
Dec 31, 2018 38.11% = 0.74 × 0.95 × 18.54% × 0.36 × 8.15
Sep 30, 2018 36.86% = 0.76 × 0.95 × 17.54% × 0.36 × 8.00
Jun 30, 2018 46.85% = 0.75 × 0.95 × 17.06% × 0.36 × 10.72
Mar 31, 2018 44.13% = 0.76 × 0.96 × 18.76% × 0.30 × 10.94
Dec 31, 2017 43.82% = 0.74 × 0.96 × 18.96% × 0.29 × 11.33
Sep 30, 2017 44.68% = 0.69 × 0.97 × 21.04% × 0.35 × 9.02
Jun 30, 2017 43.59% = 0.68 × 0.97 × 21.09% × 0.33 × 9.35
Mar 31, 2017 42.64% = 0.68 × 0.97 × 21.66% × 0.28 × 10.69
Dec 31, 2016 44.41% = 0.67 × 0.97 × 21.67% × 0.30 × 10.48
Sep 30, 2016 35.87% = 0.68 × 0.97 × 19.62% × 0.35 × 8.08
Jun 30, 2016 33.30% = 0.67 × 0.98 × 19.63% × 0.27 × 9.74
Mar 31, 2016 — = — × — × — × — × 11.35
Dec 31, 2015 — = — × — × — × — × 9.49
Sep 30, 2015 — = — × — × — × — × 7.43

Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2022 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Automatic Data Processing Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2022 3.97% = 17.77% × 0.22
Dec 31, 2021 4.64% = 17.48% × 0.27
Sep 30, 2021 4.50% = 17.55% × 0.26
Jun 30, 2021 5.33% = 17.32% × 0.31
Mar 31, 2021 4.54% = 16.88% × 0.27
Dec 31, 2020 5.03% = 17.01% × 0.30
Sep 30, 2020 5.87% = 17.07% × 0.34
Jun 30, 2020 6.30% = 16.91% × 0.37
Mar 31, 2020 5.83% = 17.20% × 0.34
Dec 31, 2019 5.02% = 16.97% × 0.30
Sep 30, 2019 6.28% = 16.52% × 0.38
Jun 30, 2019 5.47% = 16.17% × 0.34
Mar 31, 2019 4.00% = 13.76% × 0.29
Dec 31, 2018 4.68% = 13.12% × 0.36
Sep 30, 2018 4.61% = 12.71% × 0.36
Jun 30, 2018 4.37% = 12.16% × 0.36
Mar 31, 2018 4.03% = 13.60% × 0.30
Dec 31, 2017 3.87% = 13.47% × 0.29
Sep 30, 2017 4.95% = 14.08% × 0.35
Jun 30, 2017 4.66% = 14.00% × 0.33
Mar 31, 2017 3.99% = 14.32% × 0.28
Dec 31, 2016 4.24% = 14.06% × 0.30
Sep 30, 2016 4.44% = 12.84% × 0.35
Jun 30, 2016 3.42% = 12.79% × 0.27
Mar 31, 2016 — = — × —
Dec 31, 2015 — = — × —
Sep 30, 2015 — = — × —

Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2022 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Automatic Data Processing Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2022 3.97% = 0.77 × 0.98 × 23.41% × 0.22
Dec 31, 2021 4.64% = 0.77 × 0.98 × 23.20% × 0.27
Sep 30, 2021 4.50% = 0.77 × 0.98 × 23.17% × 0.26
Jun 30, 2021 5.33% = 0.77 × 0.98 × 22.80% × 0.31
Mar 31, 2021 4.54% = 0.77 × 0.98 × 22.21% × 0.27
Dec 31, 2020 5.03% = 0.77 × 0.98 × 22.41% × 0.30
Sep 30, 2020 5.87% = 0.77 × 0.97 × 22.60% × 0.34
Jun 30, 2020 6.30% = 0.77 × 0.97 × 22.55% × 0.37
Mar 31, 2020 5.83% = 0.77 × 0.96 × 23.18% × 0.34
Dec 31, 2019 5.02% = 0.77 × 0.96 × 22.87% × 0.30
Sep 30, 2019 6.28% = 0.76 × 0.96 × 22.52% × 0.38
Jun 30, 2019 5.47% = 0.76 × 0.96 × 22.12% × 0.34
Mar 31, 2019 4.00% = 0.75 × 0.95 × 19.30% × 0.29
Dec 31, 2018 4.68% = 0.74 × 0.95 × 18.54% × 0.36
Sep 30, 2018 4.61% = 0.76 × 0.95 × 17.54% × 0.36
Jun 30, 2018 4.37% = 0.75 × 0.95 × 17.06% × 0.36
Mar 31, 2018 4.03% = 0.76 × 0.96 × 18.76% × 0.30
Dec 31, 2017 3.87% = 0.74 × 0.96 × 18.96% × 0.29
Sep 30, 2017 4.95% = 0.69 × 0.97 × 21.04% × 0.35
Jun 30, 2017 4.66% = 0.68 × 0.97 × 21.09% × 0.33
Mar 31, 2017 3.99% = 0.68 × 0.97 × 21.66% × 0.28
Dec 31, 2016 4.24% = 0.67 × 0.97 × 21.67% × 0.30
Sep 30, 2016 4.44% = 0.68 × 0.97 × 19.62% × 0.35
Jun 30, 2016 3.42% = 0.67 × 0.98 × 19.63% × 0.27
Mar 31, 2016 — = — × — × — × —
Dec 31, 2015 — = — × — × — × —
Sep 30, 2015 — = — × — × — × —

Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2022 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Automatic Data Processing Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2022 17.77% = 0.77 × 0.98 × 23.41%
Dec 31, 2021 17.48% = 0.77 × 0.98 × 23.20%
Sep 30, 2021 17.55% = 0.77 × 0.98 × 23.17%
Jun 30, 2021 17.32% = 0.77 × 0.98 × 22.80%
Mar 31, 2021 16.88% = 0.77 × 0.98 × 22.21%
Dec 31, 2020 17.01% = 0.77 × 0.98 × 22.41%
Sep 30, 2020 17.07% = 0.77 × 0.97 × 22.60%
Jun 30, 2020 16.91% = 0.77 × 0.97 × 22.55%
Mar 31, 2020 17.20% = 0.77 × 0.96 × 23.18%
Dec 31, 2019 16.97% = 0.77 × 0.96 × 22.87%
Sep 30, 2019 16.52% = 0.76 × 0.96 × 22.52%
Jun 30, 2019 16.17% = 0.76 × 0.96 × 22.12%
Mar 31, 2019 13.76% = 0.75 × 0.95 × 19.30%
Dec 31, 2018 13.12% = 0.74 × 0.95 × 18.54%
Sep 30, 2018 12.71% = 0.76 × 0.95 × 17.54%
Jun 30, 2018 12.16% = 0.75 × 0.95 × 17.06%
Mar 31, 2018 13.60% = 0.76 × 0.96 × 18.76%
Dec 31, 2017 13.47% = 0.74 × 0.96 × 18.96%
Sep 30, 2017 14.08% = 0.69 × 0.97 × 21.04%
Jun 30, 2017 14.00% = 0.68 × 0.97 × 21.09%
Mar 31, 2017 14.32% = 0.68 × 0.97 × 21.66%
Dec 31, 2016 14.06% = 0.67 × 0.97 × 21.67%
Sep 30, 2016 12.84% = 0.68 × 0.97 × 19.62%
Jun 30, 2016 12.79% = 0.67 × 0.98 × 19.63%
Mar 31, 2016 — = — × — × —
Dec 31, 2015 — = — × — × —
Sep 30, 2015 — = — × — × —

Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30).

The primary reason for the increase in net profit margin ratio over Q3 2022 is the increase in operating profitability measured by EBIT margin ratio.