Automatic Data Processing Inc (ADP)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	4,079,700	3,752,000	3,412,000	2,948,900	2,598,500
Total assets	US$ in thousands	53,369,300	54,362,700	50,971,000	63,068,200	48,772,500
ROA		7.64%	6.90%	6.69%	4.68%	5.33%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $4,079,700K ÷ $53,369,300K
= 7.64%

The return on assets (ROA) for Automatic Data Processing Inc. has exhibited notable fluctuations over the specified period, reflecting varying levels of efficiency in generating net income from its total assets. As of June 30, 2021, the ROA stood at 5.33%, which indicates the company was earning approximately 5.33 cents for every dollar of assets employed. This metric decreased to 4.68% by June 30, 2022, suggesting a decline in asset utilization efficiency or profitability during that fiscal year.

Subsequently, a marked improvement was observed, with the ROA increasing to 6.69% on June 30, 2023. This upward trend continued into the following years, with the ROA reaching 6.90% by June 30, 2024, signifying enhanced effectiveness in using assets to generate earnings. The most recent data indicates further growth, as the ROA ascended to 7.64% as of June 30, 2025, suggesting sustained improvements in asset efficiency and profitability.

Overall, the trajectory of ROA over these years reflects a recovery and subsequent growth in asset management and profitability, culminating in the highest observed value in the period analyzed. This trend may be attributable to strategic operational efficiencies, revenue growth, or profit margin improvements, although further analysis of net income and asset composition would be necessary to elucidate specific contributing factors.