Automatic Data Processing (WBO:ADP) ROCE % : 57.93% (As of Dec. 2023)

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What is Automatic Data Processing ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Automatic Data Processing's annualized ROCE % for the quarter that ended in Dec. 2023 was 57.93%.

Automatic Data Processing ROCE % Historical Data

The historical data trend for Automatic Data Processing's ROCE % 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 ROCE % Chart

Automatic Data Processing Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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36.00

36.02

33.62

44.98

57.52

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
ROCE %	Get a 7-Day Free Trial															58.15	69.82	53.46	58.58	57.93

Automatic Data Processing ROCE % Calculation

Automatic Data Processing's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	4329.701	/	( ( (59662.517 - 52180.13)	+	(47046.233 - 39474.495) )	/ 2 )
	=	4329.701	/	( (7482.387	+	7571.738)	/ 2 )
	=	4329.701	/	7527.0625
	=	57.52 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	4580.232	/	( ( (46216.213 - 38631.292)	+	(52332.64 - 44105.591) )	/ 2 )
	=	4580.232	/	( ( 7584.921	+	8227.049 )	/ 2 )
	=	4580.232	/	7905.985
	=	57.93 %

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

Automatic Data Processing (WBO:ADP) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Automatic Data Processing ROCE % Related Terms

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Automatic Data Processing (WBO:ADP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Automatic Data Processing Inc (WBO:ADP) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ADP:USA ADAP:Mexico 1ADP:Italy ADP:Germany ADPR34:Brazil 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.