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Automatic Data Processing (Automatic Data Processing) Net Margin %

: 19.77% (As of Dec. 2023)
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Net margin is calculated as Net Income divided by its Revenue. Automatic Data Processing's Net Income for the three months ended in Dec. 2023 was $878 Mil. Automatic Data Processing's Revenue for the three months ended in Dec. 2023 was $4,443 Mil. Therefore, Automatic Data Processing's net margin for the quarter that ended in Dec. 2023 was 19.77%.

The historical rank and industry rank for Automatic Data Processing's Net Margin % or its related term are showing as below:

ADP' s Net Margin % Range Over the Past 10 Years
Min: 13.22   Med: 16.16   Max: 20.13
Current: 20.13


ADP's Net Margin % is ranked better than
90.15% of 1066 companies
in the Business Services industry
Industry Median: 3.94 vs ADP: 20.13

Automatic Data Processing Net Margin % Historical Data

The historical data trend for Automatic Data Processing's Net Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 16.92 [6] => 17.56 [7] => 17.82 [8] => 18.38 [9] => 19.84 )
Automatic Data Processing Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Net Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.92 17.56 17.82 18.38 19.84

Automatic Data Processing Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Net Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.34 22.30 18.31 19.94 19.77

Competitive Comparison

For the Staffing & Employment Services subindustry, Automatic Data Processing's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Automatic Data Processing Net Margin % Distribution

For the Business Services industry and Industrials sector, Automatic Data Processing's Net Margin % distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's Net Margin % falls into.



Automatic Data Processing Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Automatic Data Processing's Net Margin for the fiscal year that ended in Jun. 2023 is calculated as

Net Margin=Net Income (A: Jun. 2023 )/Revenue (A: Jun. 2023 )
=3412/17198.8
=19.84 %

Automatic Data Processing's Net Margin for the quarter that ended in Dec. 2023 is calculated as

Net Margin=Net Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=878.4/4442.7
=19.77 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Automatic Data Processing  (NAS:ADP) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Automatic Data Processing Net Margin % Related Terms

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Automatic Data Processing (Automatic Data Processing) Business Description

Address
One ADP Boulevard, Roseland, NJ, USA, 07068
ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.
Executives
John Ayala officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Maria Black officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Brock Albinson officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
David Kwon officer: Corp VP ONE ADP BOULEVARD, ROSELAD NJ 07068
Don Mcguire officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Carlos A Rodriguez officer: Corporate Vice President 10200 SUNSET DRIVE, MIAMI FL 33173
Michael A Bonarti officer: Staff Vice President ONE ADP BOULEVARD, ROSELAND NJ 07068
Christopher D'ambrosio officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Joseph Desilva officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Paul Boland officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Donald Weinstein officer: Corporate VP ONE ADP BOULEVARD, ROSELAND NJ 07068
James T Sperduto officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Laura G Brown officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Augusto J Blanchard officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Alexander Quevedo officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068