Automatic Data Processing Inc (ADP)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 54,362,700 | 64,181,600 | 57,069,400 | 49,323,600 | 50,971,000 | 59,881,800 | 54,453,000 | 46,364,700 | 63,068,200 | 72,068,100 | 59,102,600 | 59,987,200 | 48,772,500 | 54,407,700 | 49,325,900 | 42,390,100 | 39,165,500 | 43,383,400 | 49,059,400 | 37,714,700 |
| Operating ROA | -15.47% | -13.01% | -14.70% | -16.83% | -16.09% | -14.03% | -15.32% | -17.89% | -12.92% | -11.19% | -13.39% | -12.97% | -15.78% | -7.54% | -8.19% | -9.43% | -10.41% | -9.01% | -7.92% | -10.32% |
June 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-8,408,900K ÷ $54,362,700K
= -15.47%
The operating return on assets (ROA) of Automatic Data Processing Inc has shown fluctuations over the past several quarters. The operating ROA ranged from -17.89% to -7.54% in the most recent quarter. Overall, the operating ROA has been negative in all quarters, indicating that the company's operating income generated from its assets has been insufficient to cover the cost of those assets.
The downward trend in operating ROA over the quarters suggests that the company may be experiencing challenges in efficiently utilizing its assets to generate operating income. It is important for the company to focus on improving its operational efficiency and profitability to enhance its overall financial performance.
Further analysis of the company's operating expenses, revenue generation, asset utilization, and cost management may provide insights into the factors impacting the operating ROA. Investors and stakeholders should closely monitor the company's efforts to improve its operating ROA to ensure sustainable financial health in the long run.
Peer comparison
Jun 30, 2024