Automatic Data Processing Inc (ADP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	4,547,600	4,626,700	4,319,600	3,472,800	3,509,100	3,693,800	2,986,700	2,576,500	3,225,300	4,192,900	5,049,600	5,350,700	5,670,100	5,673,900	5,900,000	5,808,900	5,752,200	5,490,700	5,364,400	5,360,700
ROE		82.51%	79.96%	82.36%	100.56%	97.23%	88.27%	105.34%	117.50%	91.43%	68.25%	54.34%	50.40%	45.83%	43.56%	42.07%	42.80%	42.88%	46.09%	45.92%	44.21%

June 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,752,000K ÷ $4,547,600K
= 82.51%

Automatic Data Processing Inc's return on equity (ROE) has shown fluctuations over the analyzed periods. The ROE ranged from a low of 42.07% in March 2021 to a high of 117.50% in September 2022. Overall, the ROE has generally trended upwards with occasional fluctuations. The company experienced significant improvements in ROE from 2021 to 2022, reaching peak levels in September 2022.

The ROE values indicate the company's efficiency in generating profits from shareholders' equity. Higher ROE figures suggest that the company is effectively using its shareholder funds to generate profits. ADP's ROE performance appears to have been strong, particularly in the latter half of the analyzed periods.

It is important to analyze the underlying factors driving the changes in ROE to better understand the company's performance. Further analysis and comparison with industry peers can provide additional insights into ADP's competitive position and overall financial health.