Automatic Data Processing Inc (ADP)

Debt-to-capital ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	6,188,000	4,547,600	3,509,100	3,225,300	5,670,100
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

June 30, 2025 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,188,000K)
= 0.00

The debt-to-capital ratio of Automatic Data Processing Inc. has been consistently reported as zero across the analyzed periods from June 30, 2021, through June 30, 2025. This indicates that the company has not utilized any debt financing relative to its total capital during these years. A debt-to-capital ratio of zero suggests that the firm's capital structure is entirely composed of equity, implying a conservative approach to leverage and debt management. This financial stance minimizes interest obligations and financial risk stemming from debt. However, it also suggests that the company may forgo potential benefits of leverage, such as tax advantages or increased returns on equity. Overall, the static zero ratio over multiple years points to a stable, debt-free capital structure during this period.