Automatic Data Processing Inc (ADP)

Operating 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
Operating income (ttm)	US$ in thousands	5,411,500	5,302,400	5,214,100	5,098,200	4,942,900	4,883,100	4,455,000	4,168,500	4,114,800	3,904,500	3,994,600	3,999,100	3,826,600	3,689,800	3,544,000	3,459,600	3,324,500	3,177,800	3,169,000	3,170,300
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
Operating profit margin		26.32%	26.25%	26.20%	26.11%	25.74%	25.82%	23.97%	22.77%	22.84%	22.11%	23.16%	23.69%	23.19%	22.91%	22.58%	22.51%	22.16%	21.70%	21.72%	21.77%

June 30, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $5,411,500K ÷ $20,560,900K
= 26.32%

The operating profit margin of Automatic Data Processing Inc. (ADP) demonstrates a generally upward trend over the analyzed period, reflecting improvements in operational efficiency and profitability. Starting at approximately 21.77% as of September 30, 2020, the margin experienced a gradual and consistent increase, reaching a low point of around 21.70% in March 2021, shortly after the onset of the COVID-19 pandemic. During 2021, the margin continued to expand, surpassing 22% by June and reaching 22.58% by the end of the year.

Throughout 2022, the operating profit margin maintained a positive trajectory, rising from 22.91% in March to 23.69% by September, then experiencing a slight decrease to 23.16% at year-end. In 2023, the margin saw some fluctuations, dipping to 22.11% in March before recovering to 22.84% in June and maintaining a similar level at September.

Significant growth is observed in the fiscal year 2024, with the operating profit margin increasing notably from 23.97% at the end of December 2023 to approximately 25.82% in March 2024. The trend continued in subsequent quarters, with margins reaching around 25.74% in June and 26.11% in September 2024. The margin further modestly increased in the following periods, reaching approximately 26.20% at the end of December 2024, and continuing upward into 2025, where it approached 26.25% in March and 26.32% in June.

Overall, the data indicates that ADP has been successful in enhancing its operating profitability over the analyzed timeframe, with a clear upward trajectory particularly noticeable from early 2024 onward. This improvement suggests effective management of operating costs and possibly favorable shifts in revenue streams, contributing to the growth in operating profit margins.