Automatic Data Processing (MEX:ADAP) ROCE % : 57.46% (As of Dec. 2024)

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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. 2024 was 57.46%.

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

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

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39.29

32.34

42.07

53.66

61.72

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
ROCE %	Get a 7-Day Free Trial															57.81	69.75	53.89	58.54	57.46

Automatic Data Processing ROCE % Calculation

Automatic Data Processing's annualized ROCE % for the fiscal year that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	95881.923	/	( ( (873841.727 - 733203.458)	+	(995930.264 - 825870.244) )	/ 2 )
	=	95881.923	/	( (140638.269	+	170060.02)	/ 2 )
	=	95881.923	/	155349.1445
	=	61.72 %

Automatic Data Processing's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	116032.772	/	( ( (974894.32 - 775254.368)	+	(1336781.545 - 1132529.162) )	/ 2 )
	=	116032.772	/	( ( 199639.952	+	204252.383 )	/ 2 )
	=	116032.772	/	201946.1675
	=	57.46 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Automatic Data Processing (MEX:ADAP) 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 Business Description

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Comparable Companies

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ADP:USA 1ADP:Italy 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.