Automatic Data Processing (NAS:ADP) Profitability Rank

: 9 (As of Mar. 2023)

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Automatic Data Processing has the Profitability Rank of 9. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Automatic Data Processing's Operating Margin % for the quarter that ended in Mar. 2023 was 23.87%. As of today, Automatic Data Processing's Piotroski F-Score is 6.

Competitive Comparison

For the Staffing & Employment Services subindustry, Automatic Data Processing's Profitability Rank, along with its competitors' market caps and Profitability Rank 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.

Annual Data Quarterly Data

Automatic Data Processing Profitability Rank Distribution

For the Business Services industry and Industrials sector, Automatic Data Processing's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's Profitability Rank falls in comparison to its industry or sector. The grey bar indicates the Profitability Rank's extreme value range as defined by GuruFocus.

Automatic Data Processing Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Automatic Data Processing has the Profitability Rank of 9. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Automatic Data Processing's Operating Margin % for the quarter that ended in Mar. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	1116.6	/	4678.4
	=	23.87 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Automatic Data Processing has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Automatic Data Processing Inc operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank

Automatic Data Processing Profitability Rank Related Terms

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Automatic Data Processing (NAS:ADP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Automatic Data Processing Inc (NAS:ADP) » Definitions » Profitability Rank

Comparable Companies

Traded in Other Exchanges

ADP:Germany ADPR34:Brazil ADP:Austria

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 990,000 clients primarily in the United States. ADP's employer services segment offers payroll, HCM 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

Kareem Rogers	officer: Corp. VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
David Goeckeler	director	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Augusto J Blanchard	officer: Corp VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
James T Sperduto	officer: Corp VP	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
Alexander Quevedo	officer: Corp VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Christopher D'ambrosio	officer: Corp. VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Linnie M Haynesworth	director	214 N TRYON STREET, CHARLOTTE NC 28202
Laura G Brown	officer: Corp. VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Nazzic S Keene	director	1710 SAIC DRIVE, MCLEAN VA 22102
Brian L. Michaud	officer: Corp VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Joseph Desilva	officer: Corp VP	ONE ADP BOULEVARD, ROSELAND NJ 07068
Francine S Katsoudas	director	ONE ADP BOULEVARD, ROSELAND NJ 07068
Kathleen A Winters	officer: Corp. VP	101 COLUMBIA ROAD, MORRISTOWN NJ 07960