Automatic Data Processing Inc (ADP)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	3,752,000	3,699,400	3,557,600	3,492,300	3,411,900	3,260,700	3,146,100	3,027,400	2,948,900	2,861,600	2,743,800	2,696,900	2,598,500	2,471,800	2,482,000	2,486,100	2,466,400	2,530,400	2,463,200	2,369,800
Total assets	US$ in thousands	54,362,700	64,181,600	57,069,400	49,323,600	50,971,000	59,881,800	54,453,000	46,364,700	63,068,200	72,068,100	59,102,600	59,987,200	48,772,500	54,407,700	49,325,900	42,390,100	39,165,500	43,383,400	49,059,400	37,714,700
ROA		6.90%	5.76%	6.23%	7.08%	6.69%	5.45%	5.78%	6.53%	4.68%	3.97%	4.64%	4.50%	5.33%	4.54%	5.03%	5.86%	6.30%	5.83%	5.02%	6.28%

June 30, 2024 calculation

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

Automatic Data Processing Inc has shown varying levels of return on assets (ROA) over the past few quarters. The ROA has ranged from 3.97% to 7.08% during the period analyzed.

The company achieved its highest ROA of 7.08% in September 2023, indicating that for every dollar of assets the company had, it generated a return of 7.08 cents. This suggests efficient asset utilization and profitability during that quarter.

On the other hand, the lowest ROA of 3.97% was recorded in March 2022, reflecting a relatively lower return generated from its assets during that period.

Overall, the trend in ROA shows some fluctuations but generally remains above 4%, indicating that Automatic Data Processing Inc has been able to generate a reasonable return from its assets throughout the period. However, the company may want to focus on maintaining or improving its ROA to ensure sustained profitability and efficient asset management in the future.