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Automatic Data Processing, Inc. ADP Return on invested capital

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Other financials

Income statement

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Revenue$5.9B+7.0%
Gross profit$2.9B+8.3%
Net income$1.4B+8.8%
EPS (diluted)$3.38+10.5%

Balance sheet

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Cash & equivalents$3.2B+20.4%
Total debt$4.4B+30.6%
Total equity$6.4B+8.5%
Total assets$64.5B+14.2%

Cash flow

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Operating cash flow$2.2B+46.7%
CapEx$50.6M+39.0%
Free cash flow$2.2B+46.9%

Valuation

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Market cap$87.45B-34.2%
Enterprise value$88.61B-33.6%
P/E20.1×-13.1×
P/S4.1×-2.5×

Profitability

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Gross margin46.2%+0.2pp
Net margin20.1%+0.3pp

Returns & leverage

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Return on equity71.2%-5.1pp
Debt / equity0.7×+0.1×
Current ratio0.0×

Where this comes from

Calculated from Automatic Data Processing, Inc.’s reported figures.

Based on trailing twelve months.

The official record: Automatic Data Processing, Inc.’s 10-Q, filed April 30, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Automatic Data Processing, Inc.'s return on invested capital?
Automatic Data Processing, Inc. (ADP) reported return on invested capital of 66.7% in Q1 2026.
How has Automatic Data Processing, Inc.'s return on invested capital changed year-over-year?
Automatic Data Processing, Inc.'s return on invested capital decreased by 13.3% year-over-year, from 77% to 66.7%.
What is the long-term trend for Automatic Data Processing, Inc.'s return on invested capital?
Over 4 years (2021 to 2025), Automatic Data Processing, Inc.'s return on invested capital has grown at a 15.8% compound annual growth rate (CAGR), from 159.5% to 287.2%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.