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Automatic Data Processing (Automatic Data Processing) EBIT

: $4,948 Mil (TTM As of Dec. 2023)
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Automatic Data Processing's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $1,249 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $4,948 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Automatic Data Processing's annualized ROC % for the quarter that ended in Dec. 2023 was 5.94%. Automatic Data Processing's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 479.37%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Automatic Data Processing's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 4.81%.


Automatic Data Processing EBIT Historical Data

The historical data trend for Automatic Data Processing's EBIT 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.

* Premium members only.

Automatic Data Processing Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3,135.50 3,289.70 3,420.90 3,886.00 4,690.90

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
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,115.10 1,402.30 1,112.50 1,184.40 1,248.70

Competitive Comparison

For the Staffing & Employment Services subindustry, Automatic Data Processing's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Automatic Data Processing EV-to-EBIT Distribution

For the Business Services industry and Industrials sector, Automatic Data Processing's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's EV-to-EBIT falls into.



Automatic Data Processing EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,948 Mil.

* 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.


Automatic Data Processing  (NAS:ADP) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Automatic Data Processing's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=3834.4 * ( 1 - 23.2% )/( (46468.9 + 52738)/ 2 )
=2944.8192/49603.45
=5.94 %

where

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=49323.6 - 3603.3 - ( 1441.4 - max(0, 41228.7 - 40480.1+1441.4))
=46468.9

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Automatic Data Processing's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=4994.8/( ( (1040.9 + max(-2190, 0)) + (1043 + max(-1195.6, 0)) )/ 2 )
=4994.8/( ( 1040.9 + 1043 )/ 2 )
=4994.8/1041.95
=479.37 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3095.1 + 0 + 35943.6) - (3603.3 + 182.8 + 37442.6)
=-2190

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3372.4 + 0 + 43529.7) - (3885.7 + 188.3 + 44023.7)
=-1195.6

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Automatic Data Processing's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=4947.9/102878.064
=4.81 %

* 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.


Automatic Data Processing EBIT Related Terms

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Automatic Data Processing (Automatic Data Processing) Business Description

Address
One ADP Boulevard, Roseland, NJ, USA, 07068
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