Automatic Data Processing Inc (ADP)

Operating return on assets (Operating ROA)

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Operating income US$ in thousands 5,411,900 4,943,000 4,506,200 3,803,200 3,324,600
Total assets US$ in thousands 53,369,300 54,362,700 50,971,000 63,068,200 48,772,500
Operating ROA 10.14% 9.09% 8.84% 6.03% 6.82%

June 30, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $5,411,900K ÷ $53,369,300K
= 10.14%

The analysis of Automatic Data Processing Inc.'s operating return on assets (operating ROA) over the period from June 30, 2021, to June 30, 2025, reveals a generally upward trend, indicating improving efficiency in utilizing its assets to generate operating income.

In the fiscal year ending June 30, 2021, the operating ROA stood at 6.82%. This figure declined slightly in the subsequent year to 6.03% as of June 30, 2022, suggesting a period of reduced operational efficiency or increased asset base without proportional increases in operating income.

However, over the next two fiscal years, the operating ROA demonstrated a notable recovery and upward progression. By June 30, 2023, the metric rose to 8.84%, reflecting a significant improvement in the company's ability to generate operating income from its assets. This positive trajectory continued into the fiscal year ending June 30, 2024, with the operating ROA reaching 9.09%, suggesting further enhancements in operational efficiency or profitability.

Most recently, as of June 30, 2025, the operating ROA increased to 10.14%. This marks a substantial increase relative to the earlier period, indicating that the company has become more effective at deploying its assets to produce operating income. The ratio's upward trend over the four-year span suggests improved operational management and potential strategic initiatives that have strengthened the company's ability to convert its asset base into operating profit.

Overall, the data reflects a positive development in Automatic Data Processing Inc.'s operational efficiency, as evidenced by the rising operating ROA. The trend signals a potentially stronger competitive position and effective asset utilization strategies moving into the latest fiscal periods.