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.