Automatic Data Processing Inc (ADP)

Pretax margin

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	5,310,000	5,208,800	5,133,200	5,015,700	4,872,300	4,788,500	4,606,200	4,520,500	4,437,700	4,235,400	4,061,200	3,913,200	3,804,000	3,697,800	3,574,200	3,496,700	3,361,100	3,195,300	3,205,800	3,208,700
Revenue (ttm)	US$ in thousands	20,560,900	20,202,600	19,903,400	19,523,000	19,202,700	18,912,000	18,586,000	18,309,000	18,012,200	17,662,000	17,247,200	16,881,600	16,498,300	16,107,600	15,696,600	15,366,900	15,005,300	14,645,200	14,591,000	14,564,800
Pretax margin		25.83%	25.78%	25.79%	25.69%	25.37%	25.32%	24.78%	24.69%	24.64%	23.98%	23.55%	23.18%	23.06%	22.96%	22.77%	22.75%	22.40%	21.82%	21.97%	22.03%

June 30, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $5,310,000K ÷ $20,560,900K
= 25.83%

The pretax margin of Automatic Data Processing Inc. has demonstrated a consistent upward trend over the analyzed period, reflecting steady improvement in profitability before taxes. Starting at approximately 22.03% as of September 30, 2020, the margin remained relatively stable through the subsequent quarters, fluctuating narrowly around the 22% to 23% range through December 2022. Notably, from the first quarter of 2023 onward, a more pronounced increase is observed, with the pretax margin reaching approximately 24.64% in June 2023 and continuing to rise to 25.69% by September 2024. The upward trajectory persists into late 2024 and mid-2025, with margins approaching around 25.83% in June 2025. This sustained increase indicates improved efficiency in pre-tax profit generation relative to revenue, suggesting effective management of operating costs and favorable operational conditions over the analyzed timeframe.