Automatic Data Processing Financial Ratios
NASDAQ: ADPTechnologyEDP ServicesUSD
At close: Oct 9, 4:00 PM ET · Delayed 15 min
Automatic Data Processing ratio analysis
Automatic Data Processing earned a net margin of 20.1% in FY 2026, up from 19.8% a year earlier. Gross margin was 46.4% compared with a median of 42.6% over the prior 9 years. Return on equity reached 73.2%, meaning Automatic Data Processing generated 0.73 dollars of profit for every dollar of shareholders' equity, an unusually high figure that often reflects a small equity base after share buybacks.
Debt-to-equity stood at 0.82 versus 0.64 the year before, and the current ratio was 1.05. At the end of FY 2026, ADP traded at 22.1 times earnings; across the 10 fiscal years shown, its year-end P/E ranged from 22.1 to 33.2, with a median of 28.6. Valuation ratios use the closing share price on each fiscal year-end date and diluted shares from the income statement; profitability and leverage ratios use reported annual figures. Current valuation multiples are on the statistics page.
Summary generated from market data by MetaCap's automated system. Methodology
Automatic Data Processing financial ratios (annual)
| Ratio | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E ratio (at fiscal year end) | 22.15 | 30.98 | 26.23 | 26.77 | 30.46 | 33.19 | 26.41 | 31.55 | 31.56 | 25.81 |
| Price / sales | 4.44 | 6.12 | 5.10 | 5.05 | 5.41 | 5.72 | 4.45 | 5.10 | 4.45 | 3.71 |
| Price / book | 16.16 | 20.34 | 21.55 | 25.91 | 27.69 | 15.15 | 11.27 | 13.32 | 12.48 | 11.54 |
| Gross margin | 46.4% | 46.0% | 45.4% | 44.7% | 42.6% | 42.4% | 42.1% | 43.2% | 41.6% | 41.4% |
| Net margin | 20.1% | 19.8% | 19.5% | 18.9% | 17.9% | 17.3% | 16.9% | 16.2% | 14.2% | 14.5% |
| Free cash flow margin | 23.9% | 23.2% | 20.6% | 22.2% | 17.7% | 19.4% | 19.6% | 17.9% | 17.4% | 15.2% |
| Return on equity (ROE) | 73.2% | 65.9% | 82.5% | 97.2% | 91.4% | 45.8% | 42.9% | 42.5% | 39.8% | 45.0% |
| Return on assets (ROA) | 7.0% | 7.6% | 6.9% | 6.7% | 4.7% | 5.3% | 6.3% | 5.5% | 4.9% | 4.6% |
| Debt / equity | 0.82 | 0.64 | 0.66 | 0.85 | 0.93 | 0.53 | 0.35 | 0.37 | 0.42 | 0.51 |
| Current ratio | 1.05 | 1.05 | 1.01 | 0.99 | 0.99 | 1.07 | 1.05 | 1.05 | 1.05 | 1.10 |
| Revenue growth | 6.7% | 7.1% | 6.6% | 9.2% | 9.9% | 2.8% | 3.4% | 6.3% | 7.3% | 6.0% |
| EPS growth | 9.6% | 9.7% | 10.8% | 17.3% | 15.3% | 6.5% | 8.8% | 23.3% | 7.1% | 22.2% |