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ADP (Automatic Data Processing) Pretax Margin % : 26.41% (As of Dec. 2024)


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What is Automatic Data Processing Pretax Margin %?

Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Automatic Data Processing's Pre-Tax Income for the three months ended in Dec. 2024 was $1,261 Mil. Automatic Data Processing's Revenue for the three months ended in Dec. 2024 was $4,776 Mil. Therefore, Automatic Data Processing's pretax margin for the quarter that ended in Dec. 2024 was 26.41%.

The historical rank and industry rank for Automatic Data Processing's Pretax Margin % or its related term are showing as below:

ADP' s Pretax Margin % Range Over the Past 10 Years
Min: 17.82   Med: 22.42   Max: 27.33
Current: 27.33


ADP's Pretax Margin % is ranked better than
92.85% of 2782 companies
in the Software industry
Industry Median: 3.24 vs ADP: 27.33

Automatic Data Processing Pretax Margin % Historical Data

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

Automatic Data Processing Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Pretax Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.66 23.05 23.71 25.80 26.80

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
Pretax Margin % 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 25.75 31.35 24.25 26.99 26.41

Competitive Comparison of Automatic Data Processing's Pretax Margin %

For the Software - Application subindustry, Automatic Data Processing's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Automatic Data Processing's Pretax Margin % distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's Pretax Margin % falls into.


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Automatic Data Processing Pretax Margin % Calculation

Pretax margin - also known as pretax profit margin is the ratio of Pretax Income divided by net sales or Revenue, usually presented in percent.

Automatic Data Processing's Pretax Margin for the fiscal year that ended in Jun. 2024 is calculated as

Pretax Margin=Pre-Tax Income (A: Jun. 2024 )/Revenue (A: Jun. 2024 )
=4872.3/18177.9
=26.80 %

Automatic Data Processing's Pretax Margin for the quarter that ended in Dec. 2024 is calculated as

Pretax Margin=Pre-Tax Income (Q: Dec. 2024 )/Revenue (Q: Dec. 2024 )
=1261.3/4775.6
=26.41 %

* 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) Pretax Margin % Explanation

The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.

The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.

It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.

The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.


Automatic Data Processing Pretax Margin % Related Terms

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Automatic Data Processing Business Description

Address
One ADP Boulevard, Roseland, NJ, USA, 07068
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.
Executives
Christopher D'ambrosio officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Michael A Bonarti officer: Staff Vice President ONE ADP BOULEVARD, ROSELAND NJ 07068
Virginia Magliulo officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
David Kwon officer: Corp VP ONE ADP BOULEVARD, ROSELAD NJ 07068
John Ayala officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Maria Black officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Brian L. Michaud officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Joseph Desilva officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Don Mcguire officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Sreenivasa Kutam officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Carlos A Rodriguez officer: Corporate Vice President 10200 SUNSET DRIVE, MIAMI FL 33173
Brock Albinson 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