Automatic Data Processing Overview
Latest ROE for Automatic Data Processing: 73.18% — see history and peer comparisons.
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Return on Equity measures how efficiently a company uses shareholders' equity to generate profits. A higher ROE indicates better profitability relative to equity.
Automatic Data Processing posts a ROE of 73.18%. That is above the Technology sector average of 46.88%. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Technology stocks, a ROE near 46.88% is typical. Automatic Data Processing's 73.18% is higher that level. That is roughly 56.1% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Automatic Data Processing's ROE moves when the underlying profit, equity, or asset base changes. Cost cuts, pricing power, buybacks, write-downs, and cyclical swings can all shift the percentage. The latest reading is 73.18%; use YoY and peer views to separate noise from signal.
Context for ADP's ROE usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 46.88%), and (3) consistency with growth and profitability. This page covers the first two; Automatic Data Processing's other metric pages and overview cover the third.
Judging Automatic Data Processing against Technology peers is usually better than using a market-wide rule of thumb. Business models inside Technology are more comparable, which makes gaps in ROE easier to interpret. Start with 73.18% here, then scan peer and history charts to see if the gap is persistent.
