Automatic Data Processing Inc (ADP)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	4,079,600	3,998,300	3,933,700	3,848,900	3,752,000	3,699,400	3,557,600	3,492,300	3,411,900	3,260,600	3,146,000	3,027,300	2,948,800	2,861,600	2,743,800	2,696,900	2,598,500	2,471,800	2,482,000	2,486,100
Total assets	US$ in thousands	53,369,300	56,448,600	64,096,700	49,511,400	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
ROA		7.64%	7.08%	6.14%	7.77%	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%

June 30, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $4,079,600K ÷ $53,369,300K
= 7.64%

The analysis of Automatic Data Processing Inc.'s Return on Assets (ROA) over the period from September 2020 through June 2025 reveals notable fluctuations and an overall upward trend in recent years. During September 2020, the ROA was recorded at 5.86%, reflecting the company's profitability relative to its total assets during that period. This figure declined notably in December 2020, reaching 5.03%, and continued to decrease into the first quarter of 2021 with a value of 4.54%. The subsequent quarters saw a modest recovery, with ROA rising to 5.33% by June 2021, before dipping again in September 2021 to 4.50%. The trend stabilizes somewhat in late 2021 and early 2022, with the ROA varying between approximately 4.64% and 3.97%.

In 2022, the ROA exhibited a significant positive shift, reaching a high of 6.53% in September, marking a notable improvement in asset utilization efficiency. This upward movement continued into 2023, with ROA values fluctuating around 5.45% to 6.69%, and reaching 7.08% in March 2023, indicating an enhanced profitability relative to assets. The second quarter of 2023 saw the highest ROA during this period at 7.64%, suggesting increased operational efficiency or improved profit margins.

In the subsequent quarters, the ROA displayed some variability but remained at relatively elevated levels, with 7.77% recorded in September 2024, the highest point in this period. A slight decline to 6.14% was observed at the end of 2024, followed by an upward movement again in March 2025 to 7.08% and further to 7.64% in June 2025.

Overall, the trend indicates that Automatic Data Processing Inc. has experienced periods of both declines and recoveries in asset profitability, with a clear upward trajectory from late 2022 onwards. The recent data reflect improved efficiency in utilizing assets to generate profits, culminating in the highest ROA figures observed in mid-2024 and mid-2025. The fluctuations suggest operational adjustments, strategic initiatives, or external factors influencing profitability, but the overall trend demonstrates a positive shift in the company's ability to generate returns from its asset base in recent years.