Automatic Data Processing Inc (ADP)
Operating profit margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -8,447,200 | -8,202,000 | -8,151,500 | -7,700,500 | -7,695,000 |
| Revenue | US$ in thousands | 19,202,600 | 18,012,200 | 16,498,300 | 15,005,400 | 14,589,800 |
| Operating profit margin | -43.99% | -45.54% | -49.41% | -51.32% | -52.74% |
June 30, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-8,447,200K ÷ $19,202,600K
= -43.99%
Automatic Data Processing Inc's operating profit margin has shown a decreasing trend over the past five years. The company's operating profit margin was at its lowest in the most recent fiscal year ending on June 30, 2024, at -43.99%. This indicates that for every dollar of revenue generated, the company incurred approximately 43.99 cents in operating expenses before turning a profit. The negative percentage values suggest that the company's operating expenses exceeded its operating income during these periods.
The declining trend in the operating profit margin may raise concerns about the company's efficiency in managing its operating costs and maximizing profitability from its core business operations. Investors and stakeholders may look for improvements in this ratio in the future to ensure the company is effectively controlling costs and generating sustainable profitability.
Peer comparison
Jun 30, 2024