Automatic Data Processing Inc (ADP)

Gross profit margin

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Gross profit (ttm)	US$ in thousands	4,419,100	4,257,400	4,110,600	4,055,100	4,007,100	3,685,100	3,529,600	3,411,400	3,328,300	3,177,500	3,064,400	2,979,200	2,856,100	3,702,400	4,532,200	5,375,500	6,144,600	6,313,200	6,240,100	6,156,900
Revenue (ttm)	US$ in thousands	19,202,800	18,808,000	18,506,700	18,268,100	18,012,100	17,556,800	17,162,500	16,847,400	16,499,700	16,085,300	15,679,100	15,353,500	15,009,000	14,617,400	14,577,100	14,564,800	14,589,800	14,692,300	14,472,700	14,295,600
Gross profit margin		23.01%	22.64%	22.21%	22.20%	22.25%	20.99%	20.57%	20.25%	20.17%	19.75%	19.54%	19.40%	19.03%	25.33%	31.09%	36.91%	42.12%	42.97%	43.12%	43.07%

June 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,419,100K ÷ $19,202,800K
= 23.01%

Automatic Data Processing Inc's gross profit margin has been fluctuating over the past few quarters. The trend shows a general decrease from 43.12% in the fourth quarter of 2019 to 23.01% in the second quarter of 2024. There was a significant drop in the margin in the first quarter of 2021, but it started to improve in the following quarters up until the first quarter of 2023. However, there was a slight decline in the second quarter of 2023.

The company saw a substantial increase in gross profit margin in the first quarter of 2021, reaching 31.09%, but this was not sustained in the following quarters. The margin dropped to its lowest point at 19.03% in the third quarter of 2021 before gradually increasing again.

Overall, the gross profit margin of Automatic Data Processing Inc has shown volatility, indicating fluctuations in the company's cost of goods sold and pricing strategies impacting its profitability. Further analysis would be needed to understand the factors driving these fluctuations and their potential implications for the company's financial performance.