Automatic Data Processing Inc (ADP)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	54,362,700	50,971,000	63,068,200	48,772,500	39,165,500
Operating ROA		-15.54%	-16.09%	-12.92%	-15.79%	-19.65%

June 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-8,447,200K ÷ $54,362,700K
= -15.54%

The operating return on assets (operating ROA) of Automatic Data Processing Inc has shown a fluctuating trend over the past five years. The operating ROA stood at -15.54% as of June 30, 2024, an improvement from the previous year's -16.09%. However, it is still lower compared to the figures reported in 2022 and 2021 when the operating ROA was at -12.92% and -15.79%, respectively.

The company's performance in generating operating income from its assets has been volatile, with the operating ROA hitting its lowest point at -19.65% in June 30, 2020. The negative operating ROA numbers indicate that the company's operating income is insufficient to cover the assets employed in its operations.

It is important for Automatic Data Processing Inc to focus on improving its operating efficiency and profitability to achieve a positive operating ROA in the future. Efforts to enhance operational performance and asset utilization could potentially lead to a more favorable operating ROA figure in the coming years.