The business behind the dividend
| Measure | ADP | Median | Formula |
|---|---|---|---|
| Return on equity | 73.2% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 52.1% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $4.80bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $5.24bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 26.1% | 15.0% | Operating income ÷ revenue |
| Net margin | 20.1% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.82x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 12.48x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.05x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 1.96x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.23x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 73.2% | 65.9% | 82.5% | 97.2% | 91.4% | 45.8% | 42.9% | 42.5% | 39.8% | 45.0% | 45.8% |
| Return on capital employed | 52.1% | 52.2% | 64.6% | 68.3% | 61.2% | 38.8% | 41.0% | — | — | — | 52.2% |
| Operating margin | 26.1% | 25.8% | 25.4% | 24.6% | 23.1% | 22.4% | 21.8% | — | — | — | 24.6% |
| Net margin | 20.1% | 19.8% | 19.5% | 18.9% | 17.9% | 17.3% | 16.9% | 16.2% | 14.2% | 14.5% | 17.3% |
| Debt to equity | 0.82x | 0.64x | 0.66x | 0.85x | 0.93x | 0.53x | 0.35x | 0.37x | 0.42x | 0.51x | 0.53x |
| Current ratio | 1.05x | 1.05x | 1.01x | 0.99x | 0.99x | 1.07x | 1.05x | 1.05x | 1.05x | 1.10x | 1.05x |
| Cash conversion | 1.23x | 1.21x | 1.11x | 1.23x | 1.05x | 1.19x | 1.23x | 1.17x | 1.33x | 1.19x | 1.19x |
How it compares in technology
Among the 42 technology companies here measured on free cash flow, Automatic Data Processing pays out less than 8 of them. The median for that group is 28.6%, against this company’s 50.1%.
Closest on free cash flow
- Audiocodes (AUDC) 47.8%
- Cisco Systems (CSCO) 48.4%
- International Business Machines (IBM) 51.7%
- Power Integrations (POWI) 54.1%
Same sector and same denominator, so the figures are comparable. All 46 in technology →