Automatic Data Processing Inc (ADP)

Pretax margin

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Earnings before tax but after interest (EBT) US$ in thousands 5,310,100 4,872,300 4,437,600 3,804,100 3,361,200
Revenue US$ in thousands 20,560,900 19,202,600 18,012,200 16,498,300 15,005,400
Pretax margin 25.83% 25.37% 24.64% 23.06% 22.40%

June 30, 2025 calculation

Pretax margin = EBT ÷ Revenue
= $5,310,100K ÷ $20,560,900K
= 25.83%

The pretax margin of Automatic Data Processing Inc. has demonstrated a consistent upward trend over the analyzed period from June 30, 2021, to June 30, 2025. Starting at 22.40% in 2021, the margin has gradually increased each year, reaching 25.83% in 2025. This progression indicates an improvement in the company's profitability before taxes, reflecting enhanced operational efficiency or favorable changes in the company's revenue and cost structure. The steady growth in pretax margin suggests effective management and potentially positive market or operational conditions that have contributed to higher profitability on a pretax basis over the observed period.