Automatic Data Processing (Automatic Data Processing) COGS-to-Revenue

: 0.58 (As of Dec. 2023)

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Automatic Data Processing's Cost of Goods Sold for the three months ended in Dec. 2023 was USD2,562 Mil. Its Revenue for the three months ended in Dec. 2023 was USD4,443 Mil.

Automatic Data Processing's COGS to Revenue for the three months ended in Dec. 2023 was 0.58.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Automatic Data Processing's Gross Margin % for the three months ended in Dec. 2023 was 42.34%.

Automatic Data Processing COGS-to-Revenue Historical Data

The historical data trend for Automatic Data Processing's COGS-to-Revenue can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Automatic Data Processing Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

COGS-to-Revenue

0.59

0.60

0.59

0.58

Automatic Data Processing Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
COGS-to-Revenue																0.58	0.56	0.59	0.58	0.58

Automatic Data Processing COGS-to-Revenue Calculation

Automatic Data Processing's COGS to Revenue for the fiscal year that ended in Jun. 2023 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	9953.4	/	17198.8
	=	0.58

Automatic Data Processing's COGS to Revenue for the quarter that ended in Dec. 2023 is calculated as

COGS to Revenue	=	Cost of Goods Sold	/	Revenue
	=	2561.6	/	4442.7
	=	0.58

Automatic Data Processing (NAS:ADP) COGS-to-Revenue Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

Automatic Data Processing's Gross Margin % for the three months ended in Dec. 2023 is calculated as:

Gross Margin %	=	1	-	COGS to Revenue
	=	1	-	Cost of Goods Sold / Revenue
	=	1	-	2561.6 / 4442.7
	=	42.34 %

A company that has a moat can usually maintain or even expand their Gross Margin. A company can increase its Gross Margin in two ways. It can increase the prices of the goods it sells and keeps its Cost of Goods Sold unchanged. Or it can keep the sales price unchanged and squeeze its suppliers to reduce the Cost of Goods Sold. Warren Buffett believes businesses with the power to raise prices have moats.

Automatic Data Processing COGS-to-Revenue Related Terms

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Automatic Data Processing (Automatic Data Processing) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Automatic Data Processing Inc (NAS:ADP) » Definitions » COGS-to-Revenue

Comparable Companies

Traded in Other Exchanges

ADAP:Mexico 1ADP:Italy ADP:Germany ADP:Germany ADP:Germany ADPR34:Brazil ADP:Austria ADP:Argentina

Address

One ADP Boulevard, Roseland, NJ, USA, 07068

Website

https://www.adp.com

ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.

Executives

John Ayala	officer: Corp. VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Maria Black	officer: Corp. VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Brock Albinson	officer: Corp. VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
David Kwon	officer: Corp VP	ONE ADP BOULEVARD, ROSELAD NJ 07068
Don Mcguire	officer: Corp VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Carlos A Rodriguez	officer: Corporate Vice President	10200 SUNSET DRIVE, MIAMI FL 33173
Michael A Bonarti	officer: Staff Vice President	ONE ADP BOULEVARD, ROSELAND NJ 07068
Christopher D'ambrosio	officer: Corp. VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Joseph Desilva	officer: Corp VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Paul Boland	officer: Corp. VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Donald Weinstein	officer: Corporate VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
James T Sperduto	officer: Corp VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Laura G Brown	officer: Corp. VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Augusto J Blanchard	officer: Corp VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Alexander Quevedo	officer: Corp VP	ONE ADP BOULEVARD, ROSELAND NJ 07068