Automatic Data Processing Inc (ADP)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	4,872,200	4,788,500	4,606,200	4,520,500	4,437,700	4,235,500	4,061,400	3,913,400	3,804,200	3,697,900	3,574,200	3,496,700	3,361,100	3,195,200	3,205,700	3,208,600	3,182,500	3,284,700	3,192,500	3,098,000
Revenue (ttm)	US$ in thousands	19,202,800	18,808,000	18,506,700	18,268,100	18,012,100	17,556,800	17,162,500	16,847,400	16,499,700	16,085,300	15,679,100	15,353,500	15,009,000	14,617,400	14,577,100	14,564,800	14,589,800	14,692,300	14,472,700	14,295,600
Pretax margin		25.37%	25.46%	24.89%	24.75%	24.64%	24.12%	23.66%	23.23%	23.06%	22.99%	22.80%	22.77%	22.39%	21.86%	21.99%	22.03%	21.81%	22.36%	22.06%	21.67%

June 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $4,872,200K ÷ $19,202,800K
= 25.37%

The pretax margin of Automatic Data Processing Inc has shown relatively stable performance over the past few quarters, ranging between 21.67% and 25.46%. The company has managed to maintain healthy levels of profitability before accounting for taxes, indicating effective cost control and revenue management. The upward trend in the pretax margin from 21.67% in September 2019 to 25.46% in March 2024 reflects the company's ability to improve efficiency and generate stronger earnings relative to its revenue. However, some fluctuations in the margin can be observed quarter-to-quarter, suggesting potential factors impacting the company's financial performance.

Overall, the pretax margin of Automatic Data Processing Inc demonstrates its ability to sustain profitability and generate earnings while efficiently managing its costs. Monitoring this metric going forward can provide insights into the company's operational efficiency and financial health.