Automatic Data Processing Inc (ADP)

Return on assets (ROA)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	3,752,000	3,412,000	2,948,900	2,598,500	2,466,500
Total assets	US$ in thousands	54,362,700	50,971,000	63,068,200	48,772,500	39,165,500
ROA		6.90%	6.69%	4.68%	5.33%	6.30%

June 30, 2024 calculation

ROA = Net income ÷ Total assets
= $3,752,000K ÷ $54,362,700K
= 6.90%

Automatic Data Processing Inc's return on assets (ROA) has shown a positive trend over the past five years. In the most recent fiscal year ending June 30, 2024, the ROA increased to 6.90%, indicating that the company generated $0.069 in net income for every dollar of assets it possesses. This improvement suggests that management has been efficient in utilizing the company's assets to generate profits.

Comparing this to the previous years, the ROA was relatively stable, fluctuating between 4.68% to 6.69% before the recent increase. The 2022 fiscal year witnessed the lowest ROA of 4.68%, which might have indicated a period of lower profitability or lower asset utilization efficiency.

Overall, the upward trend in ROA indicates that Automatic Data Processing Inc has been increasingly effective in generating profits from its assets in recent years. This consistent improvement in ROA reflects positively on the company's operational efficiency and financial performance.