Analysis of Reportable Segments
Automatic Data Processing Inc. operates in 2 segments: Employer Services and Professional Employer Organization (PEO) Services.
Segment Profit Margin
Automatic Data Processing Inc., profit margin by reportable segment
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Employer Services | 29.94% | 30.37% | 29.74% | 30.70% | 30.64% | 31.13% |
| Professional Employer Organization (PEO) Services | 14.92% | 13.42% | 14.62% | 12.94% | 12.88% | 12.10% |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Employer Services | Employer Services segment profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
| Professional Employer Organization (PEO) Services | Professional Employer Organization (PEO) Services segment profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Segment Profit Margin: Employer Services
Automatic Data Processing Inc.; Employer Services; segment profit margin calculation
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Earnings before income taxes | 3,052,100) | 3,063,000) | 2,957,000) | 3,087,400) | 2,921,300) | 2,867,900) |
| Revenues | 10,195,200) | 10,086,600) | 9,942,800) | 10,057,800) | 9,535,200) | 9,211,900) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 29.94% | 30.37% | 29.74% | 30.70% | 30.64% | 31.13% |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 2021 Calculation
Segment profit margin = 100 × Earnings before income taxes ÷ Revenues
= 100 × 3,052,100 ÷ 10,195,200 = 29.94%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Employer Services | Employer Services segment profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Segment Profit Margin: Professional Employer Organization (PEO) Services
Automatic Data Processing Inc.; Professional Employer Organization (PEO) Services; segment profit margin calculation
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Earnings before income taxes | 718,800) | 605,500) | 620,100) | 504,200) | 448,600) | 371,700) |
| Revenues | 4,818,300) | 4,511,500) | 4,242,700) | 3,896,600) | 3,483,600) | 3,073,100) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 14.92% | 13.42% | 14.62% | 12.94% | 12.88% | 12.10% |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 2021 Calculation
Segment profit margin = 100 × Earnings before income taxes ÷ Revenues
= 100 × 718,800 ÷ 4,818,300 = 14.92%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Professional Employer Organization (PEO) Services | Professional Employer Organization (PEO) Services segment profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Segment Return on Assets (Segment ROA)
Automatic Data Processing Inc., ROA by reportable segment
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Employer Services | 6.07% | 8.26% | 8.54% | 10.21% | 9.70% | 7.83% |
| Professional Employer Organization (PEO) Services | 46.57% | 41.96% | 39.15% | 66.33% | 76.45% | 69.53% |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Employer Services | Employer Services segment ROA deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Professional Employer Organization (PEO) Services | Professional Employer Organization (PEO) Services segment ROA improved from 2019 to 2020 and from 2020 to 2021. |
Segment ROA: Employer Services
Automatic Data Processing Inc.; Employer Services; segment ROA calculation
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Earnings before income taxes | 3,052,100) | 3,063,000) | 2,957,000) | 3,087,400) | 2,921,300) | 2,867,900) |
| Assets | 50,279,300) | 37,071,700) | 34,606,300) | 30,250,800) | 30,107,700) | 36,637,500) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 6.07% | 8.26% | 8.54% | 10.21% | 9.70% | 7.83% |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 2021 Calculation
Segment ROA = 100 × Earnings before income taxes ÷ Assets
= 100 × 3,052,100 ÷ 50,279,300 = 6.07%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Employer Services | Employer Services segment ROA deteriorated from 2019 to 2020 and from 2020 to 2021. |
Segment ROA: Professional Employer Organization (PEO) Services
Automatic Data Processing Inc.; Professional Employer Organization (PEO) Services; segment ROA calculation
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Earnings before income taxes | 718,800) | 605,500) | 620,100) | 504,200) | 448,600) | 371,700) |
| Assets | 1,543,400) | 1,443,200) | 1,584,100) | 760,100) | 586,800) | 534,600) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 46.57% | 41.96% | 39.15% | 66.33% | 76.45% | 69.53% |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 2021 Calculation
Segment ROA = 100 × Earnings before income taxes ÷ Assets
= 100 × 718,800 ÷ 1,543,400 = 46.57%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Professional Employer Organization (PEO) Services | Professional Employer Organization (PEO) Services segment ROA improved from 2019 to 2020 and from 2020 to 2021. |
Segment Asset Turnover
Automatic Data Processing Inc., asset turnover by reportable segment
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Employer Services | 0.20 | 0.27 | 0.29 | 0.33 | 0.32 | 0.25 |
| Professional Employer Organization (PEO) Services | 3.12 | 3.13 | 2.68 | 5.13 | 5.94 | 5.75 |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Employer Services | Employer Services segment asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Professional Employer Organization (PEO) Services | Professional Employer Organization (PEO) Services segment asset turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Segment Asset Turnover: Employer Services
Automatic Data Processing Inc.; Employer Services; segment asset turnover calculation
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 10,195,200) | 10,086,600) | 9,942,800) | 10,057,800) | 9,535,200) | 9,211,900) |
| Assets | 50,279,300) | 37,071,700) | 34,606,300) | 30,250,800) | 30,107,700) | 36,637,500) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 0.20 | 0.27 | 0.29 | 0.33 | 0.32 | 0.25 |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 2021 Calculation
Segment asset turnover = Revenues ÷ Assets
= 10,195,200 ÷ 50,279,300 = 0.20
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Employer Services | Employer Services segment asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Segment Asset Turnover: Professional Employer Organization (PEO) Services
Automatic Data Processing Inc.; Professional Employer Organization (PEO) Services; segment asset turnover calculation
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 4,818,300) | 4,511,500) | 4,242,700) | 3,896,600) | 3,483,600) | 3,073,100) |
| Assets | 1,543,400) | 1,443,200) | 1,584,100) | 760,100) | 586,800) | 534,600) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 3.12 | 3.13 | 2.68 | 5.13 | 5.94 | 5.75 |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 2021 Calculation
Segment asset turnover = Revenues ÷ Assets
= 4,818,300 ÷ 1,543,400 = 3.12
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Professional Employer Organization (PEO) Services | Professional Employer Organization (PEO) Services segment asset turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Segment Capital Expenditures to Depreciation
Automatic Data Processing Inc., capital expenditures to depreciation by reportable segment
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Employer Services | 0.28 | 0.30 | 0.31 | 0.39 | 0.34 | 0.31 |
| Professional Employer Organization (PEO) Services | 0.00 | 0.00 | 0.00 | 0.00 | 0.15 | 0.67 |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Employer Services | Employer Services segment capital expenditures to depreciation ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Professional Employer Organization (PEO) Services |
Segment Capital Expenditures to Depreciation: Employer Services
Automatic Data Processing Inc.; Employer Services; segment capital expenditures to depreciation calculation
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Capital expenditures | 116,700) | 115,700) | 98,200) | 113,900) | 83,000) | 71,100) |
| Depreciation and amortization | 421,700) | 388,000) | 321,000) | 291,900) | 247,300) | 230,700) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.28 | 0.30 | 0.31 | 0.39 | 0.34 | 0.31 |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 2021 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 116,700 ÷ 421,700 = 0.28
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Employer Services | Employer Services segment capital expenditures to depreciation ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Segment Capital Expenditures to Depreciation: Professional Employer Organization (PEO) Services
Automatic Data Processing Inc.; Professional Employer Organization (PEO) Services; segment capital expenditures to depreciation calculation
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Capital expenditures | —) | —) | —) | —) | 200) | 1,000) |
| Depreciation and amortization | 7,400) | 3,400) | 3,500) | 3,000) | 1,300) | 1,500) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.15 | 0.67 |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 2021 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 0 ÷ 7,400 = 0.00
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Professional Employer Organization (PEO) Services |
Revenues
Automatic Data Processing Inc., revenues by reportable segment
US$ in thousands
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Employer Services | 10,195,200) | 10,086,600) | 9,942,800) | 10,057,800) | 9,535,200) | 9,211,900) |
| Professional Employer Organization (PEO) Services | 4,818,300) | 4,511,500) | 4,242,700) | 3,896,600) | 3,483,600) | 3,073,100) |
| Other | (8,100) | (8,300) | (10,300) | (628,600) | (639,000) | (617,200) |
| Total | 15,005,400) | 14,589,800) | 14,175,200) | 13,325,800) | 12,379,800) | 11,667,800) |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
Earnings before income taxes
Automatic Data Processing Inc., earnings before income taxes by reportable segment
US$ in thousands
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Employer Services | 3,052,100) | 3,063,000) | 2,957,000) | 3,087,400) | 2,921,300) | 2,867,900) |
| Professional Employer Organization (PEO) Services | 718,800) | 605,500) | 620,100) | 504,200) | 448,600) | 371,700) |
| Other | (409,700) | (485,900) | (571,500) | (1,420,500) | (838,800) | (1,004,900) |
| Total | 3,361,200) | 3,182,600) | 3,005,600) | 2,171,100) | 2,531,100) | 2,234,700) |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
Assets
Automatic Data Processing Inc., assets by reportable segment
US$ in thousands
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Employer Services | 50,279,300) | 37,071,700) | 34,606,300) | 30,250,800) | 30,107,700) | 36,637,500) |
| Professional Employer Organization (PEO) Services | 1,543,400) | 1,443,200) | 1,584,100) | 760,100) | 586,800) | 534,600) |
| Other | (3,050,200) | 650,600) | 5,697,300) | 6,077,800) | 6,485,500) | 6,497,900) |
| Total | 48,772,500) | 39,165,500) | 41,887,700) | 37,088,700) | 37,180,000) | 43,670,000) |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
Capital expenditures
Automatic Data Processing Inc., capital expenditures by reportable segment
US$ in thousands
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Employer Services | 116,700) | 115,700) | 98,200) | 113,900) | 83,000) | 71,100) |
| Professional Employer Organization (PEO) Services | —) | —) | —) | —) | 200) | 1,000) |
| Other | 61,600) | 52,600) | 64,500) | 78,000) | 165,800) | 93,600) |
| Total | 178,300) | 168,300) | 162,700) | 191,900) | 249,000) | 165,700) |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
Depreciation and amortization
Automatic Data Processing Inc., depreciation and amortization by reportable segment
US$ in thousands
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | |
|---|---|---|---|---|---|---|
| Employer Services | 421,700) | 388,000) | 321,000) | 291,900) | 247,300) | 230,700) |
| Professional Employer Organization (PEO) Services | 7,400) | 3,400) | 3,500) | 3,000) | 1,300) | 1,500) |
| Other | 81,600) | 88,600) | 84,500) | 82,700) | 67,500) | 56,400) |
| Total | 510,700) | 480,000) | 409,000) | 377,600) | 316,100) | 288,600) |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).