Automatic Data Processing Inc (ADP)

Gross profit margin

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Gross profit	US$ in thousands	4,419,300	4,006,800	3,326,800	2,852,600	6,144,600
Revenue	US$ in thousands	19,202,600	18,012,200	16,498,300	15,005,400	14,589,800
Gross profit margin		23.01%	22.24%	20.16%	19.01%	42.12%

June 30, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $4,419,300K ÷ $19,202,600K
= 23.01%

Automatic Data Processing Inc's gross profit margin has shown a generally positive trend over the past five years, increasing from 19.01% in June 2021 to 23.01% in June 2024. This indicates the company has been able to effectively manage its direct production costs and maintain a healthy level of profitability relative to its revenue. The significant jump in gross profit margin from 2020 to 2021, from 42.12% to 19.01%, may have been influenced by specific factors such as changes in pricing strategies or operational efficiencies. Overall, the consistent improvement in gross profit margin suggests that Automatic Data Processing Inc has been efficient in generating profit from its core operations over the years.