ADP ROE - Return on Equity
Profitability analysis for Automatic Data Processing Inc
Stock Price
$0.00
+0.00% today
Return on Equity (ROE)
0.0%
Poor - Low capital efficiency
Key Profitability Metrics
Return on Equity
0.0%
Profit per dollar of equity
Return on Assets
0.0%
Profit per dollar of assets
Return on Invested Capital
0.0%
Profit per dollar invested
Industry Comparison
ADP ROE
0.0%
Industrials Average
12.0%
Difference
-12.0%
Below industry by 100%
ADP is underperforming Industrials peers, suggesting potential for operational improvements.
DuPont Analysis - ROE Breakdown
ROE can be decomposed into three components using the DuPont formula:
ROE = Net Margin × Asset Turnover × Equity Multiplier
Net Profit Margin
0.0%
Thin margins
Asset Turnover
0.00x
Capital intensive
Equity Multiplier
0.00x
Conservative
0.0% = 0.0% × 0.00 × 0.00
What ROE Means for Investors
Capital Efficiency
ADP's negative ROE indicates the company is not generating positive returns on equity, which is a red flag for investors.
Competitive Advantage
ROE below industry average may indicate competitive pressures, operational inefficiencies, or industry headwinds affecting Automatic Data Processing Inc.
Growth Potential
With moderate ROE, ADP may need external financing or debt to fund significant growth initiatives, potentially diluting shareholders or increasing leverage.
Leverage Consideration
ADP has conservative leverage (0.0x equity multiplier), suggesting the ROE reflects genuine operational efficiency rather than financial engineering.
ROE Calculation Data
Most Recent Quarter
Net Income
$$4.08B
Shareholders Equity
$6.19B
Formula
ROE = (Net Income / Shareholders Equity) × 100
Analyze ADP in Depth
View complete financial statements, quant models, and AI-powered insights
Frequently Asked Questions
What is ADP ROE (Return on Equity)?
ADP's Return on Equity (ROE) is 0.0%, which is considered poor. ROE measures how efficiently Automatic Data Processing Inc generates profit from shareholders' equity. A negative ROE indicates the company is not profitable.
Is ADP ROE good or bad?
ADP's ROE of 0.0% is poor and below the Industrials average of approximately 12.0%. Low capital efficiency. It trails industry peers by 100%.
What is the difference between ROE, ROA, and ROIC?
ROE (Return on Equity) at 0.0% measures returns on shareholder equity. ROA (Return on Assets) at 0.0% measures how efficiently ADP uses its total assets. ROIC (Return on Invested Capital) at 0.0% shows returns on all capital invested, including debt. All three metrics help evaluate Automatic Data Processing Inc's profitability from different angles.
How does ADP generate its ROE?
ADP generates its 0.0% ROE through the DuPont formula: Net Margin (0.0%) × Asset Turnover (0.00) × Equity Multiplier (0.00). This shows thin profit margins, capital-intensive operations, and conservative capital structure.
Should I invest in ADP based on ROE?
While ADP's ROE of 0.0% is poor, ROE alone shouldn't determine investment decisions. Negative ROE indicates profitability concerns that require investigation. Consider ROE alongside other metrics like debt levels, growth rates, valuation multiples, and industry trends before investing.
What factors affect ADP Return on Equity?
ADP's ROE is affected by three key drivers: (1) Profitability - net margins from pricing power and cost management, (2) Efficiency - how well Automatic Data Processing Inc uses its assets to generate sales, and (3) Leverage - the amount of debt used to finance operations. Industrials sector dynamics, competitive positioning, management quality, and economic conditions all impact these drivers.
Disclaimer: ROE analysis is based on publicly available financial data and should not be considered financial advice. High ROE can be misleading if driven primarily by excessive leverage. Always analyze multiple metrics and consider your own research before making investment decisions.