ADP Files 10-Q for Period Ending March 31, 2024
Ticker: ADP · Form: 10-Q · Filed: May 2, 2024 · CIK: 8670
Sentiment: neutral
Topics: ADP, 10-Q, Financials, Revenue, Assets
TL;DR
<b>ADP's Q3 2024 10-Q filing reveals $13.71 billion in year-to-date revenues and $30.88 billion in total assets.</b>
AI Summary
AUTOMATIC DATA PROCESSING INC (ADP) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. ADP reported revenues for the nine months ended March 31, 2024, totaling $13,710 million. Interest on funds held for clients was $330 million for the nine months ended March 31, 2024. PEO revenues amounted to $3,580 million for the nine months ended March 31, 2024. The company's total assets were $30,877 million as of March 31, 2024. Total debt stood at $4,500 million as of March 31, 2024.
Why It Matters
For investors and stakeholders tracking AUTOMATIC DATA PROCESSING INC, this filing contains several important signals. The filing provides a detailed look at ADP's financial performance for the first three quarters of fiscal year 2024, including revenue breakdowns by segment and interest income. Understanding ADP's revenue streams and asset/debt levels is crucial for investors assessing the company's stability and growth prospects in the payroll and HR services market.
Risk Assessment
Risk Level: medium — AUTOMATIC DATA PROCESSING INC shows moderate risk based on this filing. The filing indicates significant debt ($4,500 million) relative to equity, which could pose a medium-term risk if interest rates rise or the company's earnings decline.
Analyst Insight
Investors should monitor ADP's debt management strategies and interest income trends in upcoming filings.
Financial Highlights
- revenue
- 13,710 million
- total Assets
- 30,877 million
- total Debt
- 4,500 million
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Revenues Other Than Interest On Funds Held For Clients And PEO Revenues | 13,710 million | |
| Interest On Funds Held For Clients | 330 million | |
| PEO Revenues | 3,580 million |
Key Numbers
- 13,710 million — Revenues (9 months ended 03/31/2024) (ADP:RevenuesOtherThanInterestOnFundsHeldForClientsAndPEORevenuesMember)
- 330 million — Interest on funds held for clients (9 months ended 03/31/2024) (ADP:InterestOnFundsHeldForClientsMember)
- 3,580 million — PEO revenues (9 months ended 03/31/2024) (ADP:PEORevenuesMember)
- 30,877 million — Total assets (as of 03/31/2024) (ADP:TotalAssets)
- 4,500 million — Total debt (as of 03/31/2024) (ADP:TotalDebt)
Key Players & Entities
- AUTOMATIC DATA PROCESSING INC (company) — Filer name
- ADP (company) — Ticker symbol
- 2024-03-31 (date) — Period of report
- 2024-05-02 (date) — Filed as of date
- ONE ADP BOULVARD (address) — Business address
- ROSELAND (location) — Business address city
- NJ (location) — Business address state
- 07068 (postal_code) — Business address zip
FAQ
When did AUTOMATIC DATA PROCESSING INC file this 10-Q?
AUTOMATIC DATA PROCESSING INC filed this Quarterly Report (10-Q) with the SEC on May 2, 2024.
What is a 10-Q filing?
A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by AUTOMATIC DATA PROCESSING INC (ADP).
Where can I read the original 10-Q filing from AUTOMATIC DATA PROCESSING INC?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by AUTOMATIC DATA PROCESSING INC.
What are the key takeaways from AUTOMATIC DATA PROCESSING INC's 10-Q?
AUTOMATIC DATA PROCESSING INC filed this 10-Q on May 2, 2024. Key takeaways: ADP reported revenues for the nine months ended March 31, 2024, totaling $13,710 million.. Interest on funds held for clients was $330 million for the nine months ended March 31, 2024.. PEO revenues amounted to $3,580 million for the nine months ended March 31, 2024..
Is AUTOMATIC DATA PROCESSING INC a risky investment based on this filing?
Based on this 10-Q, AUTOMATIC DATA PROCESSING INC presents a moderate-risk profile. The filing indicates significant debt ($4,500 million) relative to equity, which could pose a medium-term risk if interest rates rise or the company's earnings decline.
What should investors do after reading AUTOMATIC DATA PROCESSING INC's 10-Q?
Investors should monitor ADP's debt management strategies and interest income trends in upcoming filings. The overall sentiment from this filing is neutral.
Key Dates
- 2024-03-31: Quarterly Period End — End of the third fiscal quarter for 2024.
Filing Stats: 4,675 words · 19 min read · ~16 pages · Grade level 6.1 · Accepted 2024-05-02 12:41:00
Key Financial Figures
- $0.10 — ange on which registered Common Stock, $0.10 Par Value (voting) ADP NASDAQ Global Se
Filing Documents
- adp-20240331.htm (10-Q) — 1752KB
- exhibit311ceoq3fy24.htm (EX-31.1) — 10KB
- exhibit312cfoq3fy24.htm (EX-31.2) — 9KB
- exhibit321ceoq3fy24.htm (EX-32.1) — 5KB
- exhibit322cfoq3fy24.htm (EX-32.2) — 5KB
- q3fy2410q.pdf (10-Q) — 537KB
- 0000008670-24-000014.txt ( ) — 9340KB
- adp-20240331.xsd (EX-101.SCH) — 52KB
- adp-20240331_cal.xml (EX-101.CAL) — 99KB
- adp-20240331_def.xml (EX-101.DEF) — 151KB
- adp-20240331_lab.xml (EX-101.LAB) — 497KB
- adp-20240331_pre.xml (EX-101.PRE) — 344KB
- adp-20240331_htm.xml (XML) — 1849KB
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION Item 1.
Financial Statements (Unaudited)
Financial Statements (Unaudited) Three and nine months en ded March 31, 202 4 and 20 23 3 Three and nine months ended March 31, 202 4 and 202 3 4 Consolidated Balance Sheets At March 31, 2024 and June 30, 2023 5 Nine months ended March 31, 202 4 and 202 3 6 Notes to the Consolidated Financial Statements 7 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 23
Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk 37
Controls and Procedures
Item 4. Controls and Procedures 37
– OTHER INFORMATION
PART II – OTHER INFORMATION Item 1.
Legal Proceedings
Legal Proceedings 37 Item 1A.
Risk Factors
Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 6. Exhibits 39
FINANCIAL INFORMATION
Part I. FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements Automatic Data Processing, Inc. and Subsidiaries (In millions, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 REVENUES: Revenues, other than interest on funds held for clients and PEO revenues $ 3,270.3 $ 3,088.7 $ 9,011.7 $ 8,437.3 Interest on funds held for clients 320.8 249.4 747.9 577.7 PEO revenues (A) 1,662.7 1,589.7 4,674.5 4,519.4 TOTAL REVENUES 5,253.8 4,927.8 14,434.1 13,534.4 EXPENSES: Costs of revenues: Operating expenses 2,406.5 2,299.8 6,777.4 6,508.7 Research and development 242.7 208.6 707.8 622.6 Depreciation and amortization 119.0 115.4 359.9 336.8 TOTAL COSTS OF REVENUES 2,768.2 2,623.8 7,845.1 7,468.1 Selling, general, and administrative expenses 940.9 938.0 2,743.6 2,594.2 Interest expense 62.7 38.3 259.2 146.4 TOTAL EXPENSES 3,771.8 3,600.1 10,847.9 10,208.7 Other (income)/expense, net ( 64.3 ) ( 36.3 ) ( 196.8 ) ( 106.3 ) EARNINGS BEFORE INCOME TAXES 1,546.3 1,364.0 3,783.0 3,432.0 Provision for income taxes 361.4 320.9 860.3 796.7 NET EARNINGS $ 1,184.9 $ 1,043.1 $ 2,922.7 $ 2,635.3 BASIC EARNINGS PER SHARE $ 2.89 $ 2.52 $ 7.11 $ 6.36 DILUTED EARNINGS PER SHARE $ 2.88 $ 2.51 $ 7.07 $ 6.33 Basic weighted average shares outstanding 410.5 413.7 411.1 414.2 Diluted weighted average shares outstanding 412.1 415.5 413.6 416.2 (A) Professional Employer Organization ("PEO") revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 18,339.6 million and $ 17,301.8 million for the three months ended March 31, 2024 and 2023, respectively, and $ 52,713.4 million and $ 50,688.4 million for the nine months ended March 31, 2024 and 2023, respectively. See notes to the Consolidated Financial Statements. 3 Automatic Data Processing, Inc. and Subsidiaries (In millions) (Unaudited)