Automatic Data Processing (MIL:1ADP) Debt-to-Equity : 0.84 (As of Dec. 2024)

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What is Automatic Data Processing Debt-to-Equity?

Automatic Data Processing's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was €955 Mil. Automatic Data Processing's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was €3,135 Mil. Automatic Data Processing's Total Stockholders Equity for the quarter that ended in Dec. 2024 was €4,850 Mil. Automatic Data Processing's debt to equity for the quarter that ended in Dec. 2024 was 0.84.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Automatic Data Processing's Debt-to-Equity or its related term are showing as below:

MIL:1ADP' s Debt-to-Equity Range Over the Past 10 Years
Min: 0 Med: 0.52 Max: 1.75
Current: 0.84

During the past 13 years, the highest Debt-to-Equity Ratio of Automatic Data Processing was 1.75. The lowest was 0.00. And the median was 0.52.

MIL:1ADP's Debt-to-Equity is ranked worse than
81.99% of 2210 companies
in the Software industry
Industry Median: 0.2 vs MIL:1ADP: 0.84

Automatic Data Processing Debt-to-Equity Historical Data

The historical data trend for Automatic Data Processing's Debt-to-Equity 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 Debt-to-Equity Chart

Automatic Data Processing Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Debt-to-Equity

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0.41

0.59

1.08

0.98

0.82

Automatic Data Processing Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Debt-to-Equity	Get a 7-Day Free Trial															0.77	0.71	0.82	1.75	0.84

Competitive Comparison of Automatic Data Processing's Debt-to-Equity

For the Software - Application subindustry, Automatic Data Processing's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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's Debt-to-Equity Distribution in the Software Industry

For the Software industry and Technology sector, Automatic Data Processing's Debt-to-Equity distribution charts can be found below:

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

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Automatic Data Processing Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Automatic Data Processing's Debt to Equity Ratio for the fiscal year that ended in Jun. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(358.037	+	3084.187)	/	4224.72
	=	0.81

Automatic Data Processing's Debt to Equity Ratio for the quarter that ended in Dec. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(955.478	+	3134.597)	/	4849.586
	=	0.84

Automatic Data Processing (MIL:1ADP) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Automatic Data Processing Debt-to-Equity Related Terms

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Automatic Data Processing Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Automatic Data Processing Inc (MIL:1ADP) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

ADP:USA ADAP:Mexico 0HJI:UK ADP:Germany ADP:Germany ADPR34:Brazil ADP:Austria ADP:Argentina

Address

One ADP Boulevard, Roseland, NJ, USA, 07068

Website

https://www.adp.com

Automatic Data Processing is a global technology company providing cloud-based human capital management solutions enabling clients to better implement payroll, talent, time, tax, and benefits administration. Additionally, ADP provides human resource outsourcing solutions that allow customers to offload some of their traditional HR tasks. The company operates through two segments: employer services and the professional employer organization services. Employer services consists of the company's HCM products as well as a la carte HRO solutions. PEO services contains ADP's comprehensive HRO solution where it acts as a co-employer with its customer. As of fiscal 2024, ADP serves over 1.1 million clients and pays over 42 million workers across 140 countries.

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