Automatic Data Processing Inc (ADP)

Pretax margin

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	4,872,300	4,437,600	3,804,100	3,361,200	3,182,600
Revenue	US$ in thousands	19,202,600	18,012,200	16,498,300	15,005,400	14,589,800
Pretax margin		25.37%	24.64%	23.06%	22.40%	21.81%

June 30, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $4,872,300K ÷ $19,202,600K
= 25.37%

Automatic Data Processing Inc has displayed a consistent upward trend in its pretax margin over the past five years, with a gradual increase from 21.81% in 2020 to 25.37% in 2024. This indicates that the company has been able to improve its efficiency in generating profits before accounting for taxes and other expenses. The rising pretax margin suggests effective cost management and potentially increasing revenue streams. Overall, the company's ability to enhance its pretax margin reflects a positive trend in profitability and operational performance over the years.