Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Automatic Data Processing Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Automatic Data Processing Inc. debt to equity ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Automatic Data Processing Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Automatic Data Processing Inc. debt to capital ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Automatic Data Processing Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Automatic Data Processing Inc. debt to assets ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Automatic Data Processing Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Automatic Data Processing Inc. financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Automatic Data Processing Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Automatic Data Processing Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity
Automatic Data Processing Inc., debt to equity calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Obligations under reverse repurchase agreements | 23,500) | 13,600) | 262,000) | —) | —) | —) | |
| Short-term debt | —) | 1,001,800) | —) | —) | —) | —) | |
| Long-term debt | 2,985,000) | 1,002,800) | 2,002,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| 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 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Adobe Inc. | 0.28 | 0.31 | 0.39 | 0.44 | — | — | |
| International Business Machines Corp. | 2.74 | 2.99 | 3.02 | — | — | — | |
| Intuit Inc. | 0.21 | 0.66 | 0.12 | 0.19 | — | — | |
| Microsoft Corp. | 0.50 | 0.62 | 0.77 | 0.97 | — | — | |
| Oracle Corp. | 16.08 | 5.93 | 2.58 | 1.33 | — | — | |
| Palo Alto Networks Inc. | 5.08 | 2.80 | 0.90 | 1.99 | — | — | |
| Salesforce Inc. | 0.07 | 0.09 | 0.22 | — | — | — | |
| ServiceNow Inc. | 0.43 | 0.58 | 0.33 | — | — | — | |
| Synopsys Inc. | 0.02 | 0.03 | 0.03 | 0.13 | — | — | |
| Debt to Equity, Sector | |||||||
| Software & Services | 0.84 | 0.97 | 1.06 | — | — | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.77 | 0.88 | 0.88 | — | — | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Automatic Data Processing Inc. debt to equity ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
Automatic Data Processing Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Obligations under reverse repurchase agreements | 23,500) | 13,600) | 262,000) | —) | —) | —) | |
| Short-term debt | —) | 1,001,800) | —) | —) | —) | —) | |
| Long-term debt | 2,985,000) | 1,002,800) | 2,002,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| Total debt | 3,008,500) | 2,018,200) | 2,264,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| Current operating lease liability (recorded within Accrued expenses and other current liabilities) | 94,700) | 95,500) | —) | —) | —) | —) | |
| Long-term operating lease liabilities | 343,200) | 344,400) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 3,446,400) | 2,458,100) | 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 equity (including operating lease liability)1 | 0.61 | 0.43 | 0.42 | 0.58 | 0.50 | 0.45 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.18 | 0.21 | 0.00 | 0.00 | — | — | |
| Adobe Inc. | 0.32 | 0.35 | 0.39 | 0.44 | — | — | |
| International Business Machines Corp. | 2.92 | 3.23 | 3.27 | — | — | — | |
| Intuit Inc. | 0.25 | 0.71 | 0.12 | 0.19 | — | — | |
| Microsoft Corp. | 0.58 | 0.69 | 0.84 | 1.06 | — | — | |
| Oracle Corp. | 16.61 | 6.10 | 2.58 | 1.33 | — | — | |
| Palo Alto Networks Inc. | 5.68 | 3.16 | 0.90 | 1.99 | — | — | |
| Salesforce Inc. | 0.15 | 0.18 | 0.22 | — | — | — | |
| ServiceNow Inc. | 0.60 | 0.75 | 0.53 | — | — | — | |
| Synopsys Inc. | 0.13 | 0.14 | 0.03 | 0.13 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.95 | 1.08 | 1.12 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.84 | 0.95 | 0.90 | — | — | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 3,446,400 ÷ 5,670,100 = 0.61
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Automatic Data Processing Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital
Automatic Data Processing Inc., debt to capital calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Obligations under reverse repurchase agreements | 23,500) | 13,600) | 262,000) | —) | —) | —) | |
| Short-term debt | —) | 1,001,800) | —) | —) | —) | —) | |
| Long-term debt | 2,985,000) | 1,002,800) | 2,002,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| 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) | |
| 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 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Adobe Inc. | 0.22 | 0.24 | 0.28 | 0.31 | — | — | |
| International Business Machines Corp. | 0.73 | 0.75 | 0.75 | — | — | — | |
| Intuit Inc. | 0.17 | 0.40 | 0.10 | 0.16 | — | — | |
| Microsoft Corp. | 0.33 | 0.38 | 0.43 | 0.49 | — | — | |
| Oracle Corp. | 0.94 | 0.86 | 0.72 | 0.57 | — | — | |
| Palo Alto Networks Inc. | 0.84 | 0.74 | 0.47 | 0.67 | — | — | |
| Salesforce Inc. | 0.06 | 0.08 | 0.18 | — | — | — | |
| ServiceNow Inc. | 0.30 | 0.37 | 0.25 | — | — | — | |
| Synopsys Inc. | 0.02 | 0.03 | 0.03 | 0.12 | — | — | |
| Debt to Capital, Sector | |||||||
| Software & Services | 0.46 | 0.49 | 0.51 | — | — | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.43 | 0.47 | 0.47 | — | — | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Automatic Data Processing Inc. debt to capital ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Automatic Data Processing Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Obligations under reverse repurchase agreements | 23,500) | 13,600) | 262,000) | —) | —) | —) | |
| Short-term debt | —) | 1,001,800) | —) | —) | —) | —) | |
| Long-term debt | 2,985,000) | 1,002,800) | 2,002,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| Total debt | 3,008,500) | 2,018,200) | 2,264,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| Current operating lease liability (recorded within Accrued expenses and other current liabilities) | 94,700) | 95,500) | —) | —) | —) | —) | |
| Long-term operating lease liabilities | 343,200) | 344,400) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 3,446,400) | 2,458,100) | 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) | |
| Total capital (including operating lease liability) | 9,116,500) | 8,210,300) | 7,664,100) | 5,462,000) | 5,979,400) | 6,489,300) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.38 | 0.30 | 0.30 | 0.37 | 0.33 | 0.31 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.15 | 0.17 | 0.00 | 0.00 | — | — | |
| Adobe Inc. | 0.24 | 0.26 | 0.28 | 0.31 | — | — | |
| International Business Machines Corp. | 0.74 | 0.76 | 0.77 | — | — | — | |
| Intuit Inc. | 0.20 | 0.42 | 0.10 | 0.16 | — | — | |
| Microsoft Corp. | 0.37 | 0.41 | 0.46 | 0.51 | — | — | |
| Oracle Corp. | 0.94 | 0.86 | 0.72 | 0.57 | — | — | |
| Palo Alto Networks Inc. | 0.85 | 0.76 | 0.47 | 0.67 | — | — | |
| Salesforce Inc. | 0.13 | 0.16 | 0.18 | — | — | — | |
| ServiceNow Inc. | 0.37 | 0.43 | 0.35 | — | — | — | |
| Synopsys Inc. | 0.11 | 0.12 | 0.03 | 0.12 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.49 | 0.52 | 0.53 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.46 | 0.49 | 0.47 | — | — | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 3,446,400 ÷ 9,116,500 = 0.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Automatic Data Processing Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
Automatic Data Processing Inc., debt to assets calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Obligations under reverse repurchase agreements | 23,500) | 13,600) | 262,000) | —) | —) | —) | |
| Short-term debt | —) | 1,001,800) | —) | —) | —) | —) | |
| Long-term debt | 2,985,000) | 1,002,800) | 2,002,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| Total debt | 3,008,500) | 2,018,200) | 2,264,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| Total assets | 48,772,500) | 39,165,500) | 41,887,700) | 37,088,700) | 37,180,000) | 43,670,000) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Adobe Inc. | 0.15 | 0.17 | 0.20 | 0.22 | — | — | |
| International Business Machines Corp. | 0.39 | 0.39 | 0.41 | — | — | — | |
| Intuit Inc. | 0.13 | 0.31 | 0.07 | 0.08 | — | — | |
| Microsoft Corp. | 0.21 | 0.24 | 0.27 | 0.31 | — | — | |
| Oracle Corp. | 0.64 | 0.62 | 0.52 | 0.44 | — | — | |
| Palo Alto Networks Inc. | 0.31 | 0.34 | 0.22 | 0.33 | — | — | |
| Salesforce Inc. | 0.04 | 0.06 | 0.11 | — | — | — | |
| ServiceNow Inc. | 0.15 | 0.19 | 0.12 | — | — | — | |
| Synopsys Inc. | 0.01 | 0.02 | 0.02 | 0.08 | — | — | |
| Debt to Assets, Sector | |||||||
| Software & Services | 0.28 | 0.31 | 0.32 | — | — | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.28 | 0.30 | 0.31 | — | — | — | |
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 assets = Total debt ÷ Total assets
= 3,008,500 ÷ 48,772,500 = 0.06
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Automatic Data Processing Inc. debt to assets ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Automatic Data Processing Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Obligations under reverse repurchase agreements | 23,500) | 13,600) | 262,000) | —) | —) | —) | |
| Short-term debt | —) | 1,001,800) | —) | —) | —) | —) | |
| Long-term debt | 2,985,000) | 1,002,800) | 2,002,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| Total debt | 3,008,500) | 2,018,200) | 2,264,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| Current operating lease liability (recorded within Accrued expenses and other current liabilities) | 94,700) | 95,500) | —) | —) | —) | —) | |
| Long-term operating lease liabilities | 343,200) | 344,400) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 3,446,400) | 2,458,100) | 2,264,200) | 2,002,400) | 2,002,400) | 2,007,700) | |
| Total assets | 48,772,500) | 39,165,500) | 41,887,700) | 37,088,700) | 37,180,000) | 43,670,000) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.07 | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.08 | 0.09 | 0.00 | 0.00 | — | — | |
| Adobe Inc. | 0.17 | 0.19 | 0.20 | 0.22 | — | — | |
| International Business Machines Corp. | 0.42 | 0.43 | 0.45 | — | — | — | |
| Intuit Inc. | 0.16 | 0.33 | 0.07 | 0.08 | — | — | |
| Microsoft Corp. | 0.25 | 0.27 | 0.30 | 0.34 | — | — | |
| Oracle Corp. | 0.66 | 0.64 | 0.52 | 0.44 | — | — | |
| Palo Alto Networks Inc. | 0.35 | 0.38 | 0.22 | 0.33 | — | — | |
| Salesforce Inc. | 0.10 | 0.11 | 0.11 | — | — | — | |
| ServiceNow Inc. | 0.21 | 0.24 | 0.19 | — | — | — | |
| Synopsys Inc. | 0.08 | 0.08 | 0.02 | 0.08 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.32 | 0.34 | 0.34 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.31 | 0.33 | 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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 3,446,400 ÷ 48,772,500 = 0.07
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Automatic Data Processing Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Financial Leverage
Automatic Data Processing Inc., financial leverage calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Accenture PLC | 2.21 | 2.18 | 2.07 | 2.36 | — | — | |
| Adobe Inc. | 1.84 | 1.83 | 1.97 | 2.00 | — | — | |
| International Business Machines Corp. | 6.98 | 7.57 | 7.30 | — | — | — | |
| Intuit Inc. | 1.57 | 2.14 | 1.68 | 2.20 | — | — | |
| Microsoft Corp. | 2.35 | 2.55 | 2.80 | 3.13 | — | — | |
| Oracle Corp. | 25.03 | 9.56 | 4.99 | 3.00 | — | — | |
| Palo Alto Networks Inc. | 16.14 | 8.23 | 4.16 | 6.03 | — | — | |
| Salesforce Inc. | 1.60 | 1.63 | 1.97 | — | — | — | |
| ServiceNow Inc. | 2.92 | 3.07 | 2.83 | — | — | — | |
| Synopsys Inc. | 1.65 | 1.64 | 1.57 | 1.77 | — | — | |
| Financial Leverage, Sector | |||||||
| Software & Services | 2.98 | 3.17 | 3.32 | — | — | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.72 | 2.90 | 2.87 | — | — | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Automatic Data Processing Inc. financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Interest Coverage
Automatic Data Processing Inc., interest coverage calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| 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) | |
| Less: Net loss from discontinued operations | —) | —) | —) | —) | —) | (900) | |
| Add: Income tax expense | 762,700) | 716,100) | 712,800) | 550,300) | 797,700) | 741,300) | |
| Add: Interest expense | 59,700) | 107,100) | 129,900) | 102,700) | 80,000) | 56,200) | |
| Earnings before interest and tax (EBIT) | 3,420,900) | 3,289,700) | 3,135,500) | 2,273,800) | 2,611,100) | 2,290,900) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 57.30 | 30.72 | 24.14 | 22.14 | 32.64 | 40.76 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Accenture PLC | 131.46 | 205.84 | 273.26 | 298.26 | — | — | |
| Adobe Inc. | 51.49 | 37.00 | 21.38 | 32.31 | — | — | |
| International Business Machines Corp. | 5.20 | 4.62 | 8.58 | — | — | — | |
| Intuit Inc. | 89.14 | 158.00 | 126.40 | 76.15 | — | — | |
| Microsoft Corp. | 31.31 | 21.47 | 17.27 | 14.35 | — | — | |
| Oracle Corp. | 6.28 | 7.13 | 6.97 | 7.43 | — | — | |
| Palo Alto Networks Inc. | -1.85 | -1.61 | 0.11 | -3.40 | — | — | |
| Salesforce Inc. | 24.28 | 7.42 | 8.80 | — | — | — | |
| ServiceNow Inc. | 9.89 | 5.56 | 3.02 | — | — | — | |
| Synopsys Inc. | 240.38 | 125.16 | 47.79 | 24.29 | — | — | |
| Interest Coverage, Sector | |||||||
| Software & Services | 17.65 | 14.44 | 13.06 | — | — | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 22.93 | 16.69 | 15.79 | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 3,420,900 ÷ 59,700 = 57.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Automatic Data Processing Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Fixed Charge Coverage
Automatic Data Processing Inc., fixed charge coverage calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| 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) | |
| Less: Net loss from discontinued operations | —) | —) | —) | —) | —) | (900) | |
| Add: Income tax expense | 762,700) | 716,100) | 712,800) | 550,300) | 797,700) | 741,300) | |
| Add: Interest expense | 59,700) | 107,100) | 129,900) | 102,700) | 80,000) | 56,200) | |
| Earnings before interest and tax (EBIT) | 3,420,900) | 3,289,700) | 3,135,500) | 2,273,800) | 2,611,100) | 2,290,900) | |
| Add: Operating lease cost | 166,700) | 176,500) | 270,100) | 234,900) | 234,500) | 271,300) | |
| Earnings before fixed charges and tax | 3,587,600) | 3,466,200) | 3,405,600) | 2,508,700) | 2,845,600) | 2,562,200) | |
| Interest expense | 59,700) | 107,100) | 129,900) | 102,700) | 80,000) | 56,200) | |
| Operating lease cost | 166,700) | 176,500) | 270,100) | 234,900) | 234,500) | 271,300) | |
| Fixed charges | 226,400) | 283,600) | 400,000) | 337,600) | 314,500) | 327,500) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 15.85 | 12.22 | 8.51 | 7.43 | 9.05 | 7.82 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Accenture PLC | 10.41 | 9.66 | 10.07 | 9.63 | — | — | |
| Adobe Inc. | 25.59 | 18.77 | 10.78 | 13.34 | — | — | |
| International Business Machines Corp. | 3.13 | 2.62 | 4.41 | — | — | — | |
| Intuit Inc. | 25.58 | 27.48 | 34.00 | 26.91 | — | — | |
| Microsoft Corp. | 16.90 | 12.44 | 10.94 | 9.45 | — | — | |
| Oracle Corp. | 5.17 | 5.68 | 5.50 | 6.38 | — | — | |
| Palo Alto Networks Inc. | -1.09 | -0.52 | 0.41 | -1.01 | — | — | |
| Salesforce Inc. | 2.94 | 1.69 | 3.00 | — | — | — | |
| ServiceNow Inc. | 2.95 | 2.29 | 1.69 | — | — | — | |
| Synopsys Inc. | 9.29 | 7.46 | 6.30 | 4.98 | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | 9.43 | 7.69 | 7.58 | — | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 13.50 | 10.20 | 10.46 | — | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,587,600 ÷ 226,400 = 15.85
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Automatic Data Processing Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |