Automatic Data Processing Inc (ADP)

Gross profit margin

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Gross profit (ttm)	US$ in thousands	10,379,900	10,161,000	9,992,400	9,785,800	9,590,800	9,419,300	8,771,200	8,209,700	7,677,400	7,417,200	7,245,400	7,350,500	7,441,900	7,213,200	7,306,000	7,169,000	6,974,100	6,720,200	6,697,700	6,692,400
Revenue (ttm)	US$ in thousands	20,560,900	20,202,600	19,903,400	19,523,000	19,202,700	18,912,000	18,586,000	18,309,000	18,012,200	17,662,000	17,247,200	16,881,600	16,498,300	16,107,600	15,696,600	15,366,900	15,005,300	14,645,200	14,591,000	14,564,800
Gross profit margin		50.48%	50.30%	50.20%	50.12%	49.95%	49.81%	47.19%	44.84%	42.62%	42.00%	42.01%	43.54%	45.11%	44.78%	46.55%	46.65%	46.48%	45.89%	45.90%	45.95%

June 30, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $10,379,900K ÷ $20,560,900K
= 50.48%

The gross profit margin of Automatic Data Processing Inc. demonstrates a generally stable trend with periods of fluctuation over the examined timeframe. Starting from approximately 45.95% on September 30, 2020, the margin remained relatively steady throughout 2020 and into early 2021, with minor variations, reaching a peak of approximately 46.65% on September 30, 2021. During 2022, a downward trend became evident, with the margin declining from about 44.78% at the end of March 2022 to approximately 42.01% by December 2022, reflecting potential pressures on gross profitability or changes in cost structures.

The initial decline persisted into 2023, with the margin stabilizing around 42% at the end of March, before experiencing a slight recovery to about 44.84% by September 2023. A notable upward trend commenced from late 2023, culminating in a significant increase to approximately 47.19% at the close of December 2023. This upward movement continued into 2024 and 2025, reaching approximately 50.48% by June 2025.

This overall trajectory indicates periods of margin compression followed by recovery and expansion, suggesting that the company's gross profitability has been resilient and capable of improving over time, particularly from late 2023 onward. The recent upward trend points to potential improvements in cost management, pricing strategies, or changes in business composition that positively influence gross profit margins.