Microsoft Excel LibreOffice Calc

Automatic Data Processing Inc. (ADP)


Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

Automatic Data Processing Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Return on Sales
Gross profit margin 42.95% 41.15% 41.28% 41.37% 41.24% 40.84%
Operating profit margin 21.34% 18.85% 18.80% 18.77% 18.41% 18.09%
Net profit margin 16.17% 12.16% 14.00% 12.79% 13.28% 12.42%
Return on Investment
Return on equity (ROE) 42.46% 46.85% 43.59% 33.30% 30.21% 22.73%
Return on assets (ROA) 5.47% 4.37% 4.66% 3.42% 4.39% 4.73%

Based on: 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Automatic Data Processing Inc.’s gross profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Automatic Data Processing Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Automatic Data Processing Inc.’s net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Automatic Data Processing Inc.’s ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
ROA A profitability ratio calculated as net income divided by total assets. Automatic Data Processing Inc.’s ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Gross Profit Margin

Automatic Data Processing Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in thousands)
Gross profit 6,088,600  5,483,200  5,110,000  4,827,500  4,510,900  4,985,100 
Revenues 14,175,200  13,325,800  12,379,800  11,667,800  10,938,500  12,206,500 
Profitability Ratio
Gross profit margin1 42.95% 41.15% 41.28% 41.37% 41.24% 40.84%
Benchmarks
Gross Profit Margin, Competitors2
Accenture PLC 30.81% 29.91% 30.00% 29.53% 29.80% 30.38%

Based on: 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 6,088,600 ÷ 14,175,200 = 42.95%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Automatic Data Processing Inc.’s gross profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Operating Profit Margin

Automatic Data Processing Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in thousands)
Operating income 3,024,400  2,511,700  2,326,800  2,190,500  2,014,000  2,207,800 
Revenues 14,175,200  13,325,800  12,379,800  11,667,800  10,938,500  12,206,500 
Profitability Ratio
Operating profit margin1 21.34% 18.85% 18.80% 18.77% 18.41% 18.09%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 14.59% 14.04% 12.60% 13.82% 13.48% 13.49%
Operating Profit Margin, Sector
Support Services 15.21% 14.16% 15.07% 14.71% 14.76%
Operating Profit Margin, Industry
Industrials 14.04% 13.70% 12.78% 13.66% 16.06%

Based on: 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 2019 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 3,024,400 ÷ 14,175,200 = 21.34%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Automatic Data Processing Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Net Profit Margin

Automatic Data Processing Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in thousands)
Net earnings 2,292,800  1,620,800  1,733,400  1,492,500  1,452,500  1,515,900 
Revenues 14,175,200  13,325,800  12,379,800  11,667,800  10,938,500  12,206,500 
Profitability Ratio
Net profit margin1 16.17% 12.16% 14.00% 12.79% 13.28% 12.42%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 11.06% 9.76% 9.37% 11.82% 9.28% 9.23%
Net Profit Margin, Sector
Support Services 10.34% 10.54% 12.06% 10.28% 10.11%
Net Profit Margin, Industry
Industrials 6.94% 7.55% 8.82% 7.36% 9.90%

Based on: 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 2019 Calculation
Net profit margin = 100 × Net earnings ÷ Revenues
= 100 × 2,292,800 ÷ 14,175,200 = 16.17%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Automatic Data Processing Inc.’s net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Return on Equity (ROE)

Automatic Data Processing Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in thousands)
Net earnings 2,292,800  1,620,800  1,733,400  1,492,500  1,452,500  1,515,900 
Stockholders’ equity 5,399,900  3,459,600  3,977,000  4,481,600  4,808,500  6,670,200 
Profitability Ratio
ROE1 42.46% 46.85% 43.59% 33.30% 30.21% 22.73%
Benchmarks
ROE, Competitors2
Accenture PLC 33.17% 39.17% 38.50% 54.42% 49.78% 51.32%
ROE, Sector
Support Services 41.09% 40.06% 46.56% 41.18% 35.94%
ROE, Industry
Industrials 22.77% 21.24% 24.02% 17.80% 21.32%

Based on: 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 2019 Calculation
ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 2,292,800 ÷ 5,399,900 = 42.46%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Automatic Data Processing Inc.’s ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Return on Assets (ROA)

Automatic Data Processing Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in thousands)
Net earnings 2,292,800  1,620,800  1,733,400  1,492,500  1,452,500  1,515,900 
Total assets 41,887,700  37,088,700  37,180,000  43,670,000  33,110,500  32,051,700 
Profitability Ratio
ROA1 5.47% 4.37% 4.66% 3.42% 4.39% 4.73%
Benchmarks
ROA, Competitors2
Accenture PLC 16.04% 16.61% 15.18% 19.95% 16.72% 16.41%
ROA, Sector
Support Services 9.23% 8.65% 8.72% 8.77% 8.92%
ROA, Industry
Industrials 4.68% 4.77% 5.51% 4.25% 5.29%

Based on: 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 2019 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 2,292,800 ÷ 41,887,700 = 5.47%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Automatic Data Processing Inc.’s ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.