Automatic Data Processing

Halal Rating :
Comfortable
Last Price $306
Market Cap $124.49b
1D Change

-0.94 %

1 Year Change

26.27 %

Next Earnings Date

Yet to be announced

Company Overview

Automatic Data Processing, Inc. provides cloud-based human capital management solutions. It operates in two segments, Employer Services and Professional Employer Organization. The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses.

Revenue Sources

Pass

Based on ADP's SEC filings and financial reports, the company generates its revenue primarily from payroll processing, HR services, and related business solutions. These core business activities are halal as they provide legitimate services that facilitate business operations. The company does not derive significant revenue from prohibited activities such as gambling, alcohol, tobacco, or adult entertainment.

Reliance on Interest

Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
Dec. 31, 2024 $5.05b $4.12b - $129.6m 0.00% 3.15%
Sept. 30, 2024 $4.83b $3.93b - $137.8m 0.00% 3.51%
June 30, 2024 $4.77b $4.28b - - 0.00% 0.00%
March 31, 2024 $5.25b $4.01b - $62.7m 0.00% 1.56%

For the last four quarters, interest expense as a proportion of total expenses has been consistently below the 5% threshold. The interest expenses appear to be incidental to the company's core operations rather than a significant source of income or expense.

Operational Ethics

Pass

While ADP operates globally, there is no evidence of significant or material ongoing relationships with entities involved in human rights violations. The company's operations in various countries appear to be focused on providing legitimate business services rather than supporting questionable regimes.

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