Automatic Data Processing Inc (ADP)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	2,991,300	2,990,700	2,990,200	2,989,800	2,989,000	2,988,600	2,988,100	2,987,600	2,987,100	2,986,600	2,986,100	2,985,500	2,985,000	1,994,300	1,994,100	1,993,900	1,002,800	1,002,800	1,003,000	1,003,400
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
Debt-to-capital ratio		0.40	0.39	0.41	0.46	0.46	0.45	0.50	0.54	0.48	0.42	0.37	0.36	0.34	0.26	0.25	0.26	0.15	0.15	0.16	0.16

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,991,300K ÷ ($2,991,300K + $4,547,600K)
= 0.40

The debt-to-capital ratio of Automatic Data Processing Inc has fluctuated over the past several quarters. The ratio was relatively stable around 0.40 to 0.45 from December 2020 to March 2023. However, there was an increase in the ratio in the subsequent quarters, reaching a peak of 0.54 in September 2022.

After September 2022, the debt-to-capital ratio started to decline gradually, reaching a low of 0.15 in September 2020. This indicates that the company reduced its reliance on debt financing and improved its capital structure during this period.

Overall, the debt-to-capital ratio of Automatic Data Processing Inc has shown variability but trended downwards in the more recent quarters, suggesting a positive shift towards a more balanced capital structure with lower debt levels relative to total capital.