Automatic Data Processing Inc (ADP)

Operating 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
Operating income (ttm)	US$ in thousands	-8,408,900	-8,352,400	-8,390,800	-8,302,100	-8,201,500	-8,400,400	-8,341,900	-8,292,900	-8,150,000	-8,065,200	-7,915,400	-7,779,600	-7,696,900	-4,103,400	-4,041,900	-3,997,900	-4,076,000	-3,907,400	-3,883,700	-3,893,200
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
Operating profit margin		-43.79%	-44.41%	-45.34%	-45.45%	-45.53%	-47.85%	-48.61%	-49.22%	-49.39%	-50.14%	-50.48%	-50.67%	-51.28%	-28.07%	-27.73%	-27.45%	-27.94%	-26.59%	-26.83%	-27.23%

June 30, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-8,408,900K ÷ $19,202,800K
= -43.79%

The operating profit margin of Automatic Data Processing Inc has shown a consistent trend of decline over the past several quarters. The company's operating profit margin has ranged from -51.28% to -26.59% over the last two years, indicating that the company has been facing challenges in generating profits from its core operations.

The operating profit margin measures the efficiency of a company in managing its operating expenses relative to its revenue. The negative values indicate that the company's operating expenses have been outpacing its operating income, leading to overall negative profitability from its core business activities.

The consecutive quarters of negative operating profit margins suggest that Automatic Data Processing Inc may be struggling with cost management, pricing strategies, or revenue generation. Investors and stakeholders may closely monitor future financial results and management strategies to assess the company's ability to improve its operating profitability.