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Automatic Data Processing key statistics and ratios

In fiscal 2026, Automatic Data Processing had return on equity of 72.2%, a net margin of 20.1%, debt equal to 82.3% of equity and a current ratio of 1.05. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2010Jun 20102011Jun 20112012Jun 20122013Jun 20132014Jun 20142015Jun 20152016Jun 20162017Jun 20172018Jun 20182019Jun 20192020Jun 20202021Jun 20212022Jun 20222023Jun 20232024Jun 20242025Jun 20252026Jun 2026LTMSept 2026
Gross margin———————41.4%41.6%43.2%42.1%42.4%42.6%44.7%45.4%46.0%46.4%46.6%
Net margin13.6%12.8%13.1%14.9%14.8%13.3%12.8%14.5%14.2%16.2%16.9%17.3%17.9%18.9%19.5%19.8%20.1%20.3%
Free-cash-flow margin17.7%15.5%16.7%15.3%16.2%16.6%14.8%15.2%17.4%17.9%19.6%19.4%17.7%22.2%20.6%23.2%23.9%23.6%
Return on equity22.1%21.8%22.9%22.9%23.6%25.3%32.1%42.3%43.3%45.2%44.2%45.5%66.3%101.3%93.1%76.0%72.2%81.4%
Return on assets4.5%4.1%4.3%4.5%4.7%4.5%3.9%4.3%4.8%5.7%6.1%5.9%5.3%6.0%7.1%7.6%7.6%7.1%
Asset turnover0.330.320.330.300.320.340.300.300.340.350.360.340.290.320.360.380.380.35
Current ratio1.111.071.091.061.141.061.101.101.051.051.051.070.990.991.011.051.051.03
Debt to equity0.8%0.6%0.3%0.2%32.8%0.2%44.9%50.5%42.3%37.1%34.8%52.7%92.7%85.2%65.8%141.3%82.3%97.8%
Effective tax rate35.2%35.1%34.6%34.4%33.9%33.5%33.2%31.7%17.4%23.7%22.5%22.7%22.5%23.1%23.0%23.2%23.0%23.0%
R&D as % of revenue————————————4.8%4.7%5.0%4.8%4.7%4.6%
SG&A as % of revenue23.8%23.5%23.2%23.3%23.2%22.8%22.6%22.4%22.3%21.7%20.6%20.3%19.6%19.7%19.7%19.7%20.1%20.1%
Capital spending as % of revenue1.2%1.8%1.3%1.4%1.6%1.5%1.4%1.9%1.6%1.1%1.2%1.2%1.1%1.1%1.1%0.8%0.9%0.9%
Free cash flow ÷ net income130.4%121.5%127.5%102.9%109.6%125.0%115.8%105.5%122.5%110.2%115.7%112.2%99.2%117.3%105.3%116.9%118.8%115.9%
Dividends ÷ net income55.6%55.2%53.3%57.3%58.3%63.9%63.2%55.7%56.4%56.4%59.6%60.6%56.3%55.8%58.2%58.8%59.5%59.1%
Dividends and buybacks ÷ free cash flow91.2%93.5%83.7%100.4%93.3%136.9%121.4%119.6%88.9%88.3%86.8%101.1%124.0%75.6%86.5%77.1%89.8%98.2%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

3 of 6 checks passed · September 30, 2026
What it owns · $63.5bn
Short-term assets $52.8bnLonger-term assets $10.6bn
What it owes, and who funded it · $63.5bn
Short-term liabilities $51.4bnLonger-term liabilities $7.0bnShareholders' equity $5.1bn
  • Short-term assets cover short-term liabilities $52.8bn of assets due within a year against $51.4bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities $52.8bn short-term assets against $7.0bn of longer-dated liabilities.
  • More cash than debt $3.3bn of cash against $5.0bn of debt.
  • Debt below 40% of shareholders' equity Debt is 98% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 71% to 98% over five years.
  • A year's operating cash flow covers at least 20% of debt $5.4bn of operating cash flow against $5.0bn of debt.
  • Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Automatic Data Processing's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

64 /100

Moderate moat

How hard Automatic Data Processing's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 10 / 20

    Cash operating profit has been a median 8.5% of total assets over 10 years.

  • Pricing power 15 / 20

    Gross margin has been a median 43.0%, moving by 1.8 percentage points (standard deviation) across 10 years.

  • Durability 15 / 20

    Net margin has been a median 17.7%; its worst year was 14.2%.

  • Cash conversion 20 / 20

    Free cash flow was positive in 10 of 10 years, at a median 19.9% of revenue.

  • Discipline 19 / 20

    The diluted share count fell 6.0% over five years; stock-based pay has been a median 1.2% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (79 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

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Figures from Automatic Data Processing's SEC filings (10-K and 10-Q), retrieved November 3, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Automatic Data Processing.