Automatic Data Processing (ADP) Margins & Profitability 2020-2026

Gross, EBITDA, operating, and net margin trends

Margins

Profit margins across the income statement

Gross Margin: 48.3%
EBITDA Margin: 32.5%
Op. Margin: 30.1%
Net Margin: 22.9%

Op. margin of 30.1% is up 0.7% YoY — cost efficiency is improving. Net margin at 22.9% and gross margin of 48.3% — earnings take a bigger bite when COGS stays lean..

Gross Margin (%)

Revenue left after direct cost of goods sold

EBITDA Margin (%)

Operating profitability independent of capital structure

Operating & Net Margins (%)

How much of each dollar becomes profit