Automatic Operating Income vs Gross Profit Analysis

ADP Stock

USD 244.08 0.23 0.09%

Automatic Data financial indicator trend analysis is way more than just evaluating Automatic Data Processing prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Automatic Data Processing is a good investment. Please check the relationship between Automatic Data Operating Income and its Gross Profit accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Automatic Data Processing. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.

Operating Income vs Gross Profit

Operating Income vs Gross Profit Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Automatic Data Processing Operating Income account and Gross Profit. At this time, the significance of the direction appears to have almost identical trend.

The correlation between Automatic Data's Operating Income and Gross Profit is 0.97. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Gross Profit in the same time period over historical financial statements of Automatic Data Processing, assuming nothing else is changed. The correlation between historical values of Automatic Data's Operating Income and Gross Profit is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of Automatic Data Processing are associated (or correlated) with its Gross Profit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit has no effect on the direction of Operating Income i.e., Automatic Data's Operating Income and Gross Profit go up and down completely randomly.

Correlation Coefficient

0.97

Relationship Direction	Positive
Relationship Strength	Very Strong

View All Relationships

Operating Income

Operating Income is the amount of profit realized from Automatic Data Processing operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Automatic Data Processing is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Gross Profit

Gross profit is a required income statement account that reflects total revenue of Automatic Data Processing minus its cost of goods sold. It is profit before Automatic Data operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Most indicators from Automatic Data's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Automatic Data Processing current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Automatic Data Processing. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.

At this time, Automatic Data's Selling General Administrative is relatively stable compared to the past year. As of 04/16/2024, Sales General And Administrative To Revenue is likely to grow to 0.29, while Enterprise Value Over EBITDA is likely to drop 9.76.

	2021	2022	2023	2024 (projected)
Gross Profit	6.6B	7.2B	8.3B	8.7B
Total Revenue	16.0B	17.2B	19.8B	20.8B

Gross Profit Total Revenue

Automatic Data fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Good Will	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Common Stock Total Equity
Total Assets		0.82	0.99	1.0	0.19	0.71	0.64	0.95	0.21	0.85	0.8	0.23	0.95	0.42	-0.91	0.89	0.79	0.14	-0.93	1.0	0.77	1.0	0.51	0.84	0.15	0.55
Short Long Term Debt Total	0.82		0.79	0.82	-0.09	0.69	0.8	0.83	0.26	0.74	0.84	0.28	0.88	0.13	-0.77	0.92	0.87	-0.21	-0.83	0.84	0.7	0.81	0.63	0.8	-0.26	0.55
Other Current Liab	0.99	0.79		0.99	0.11	0.68	0.66	0.9	0.16	0.79	0.75	0.18	0.91	0.35	-0.88	0.87	0.79	0.22	-0.92	0.99	0.75	1.0	0.41	0.8	0.13	0.48
Total Current Liabilities	1.0	0.82	0.99		0.11	0.68	0.67	0.94	0.17	0.82	0.79	0.18	0.94	0.37	-0.89	0.88	0.8	0.16	-0.92	1.0	0.76	1.0	0.52	0.82	0.11	0.55
Total Stockholder Equity	0.19	-0.09	0.11	0.11		0.25	-0.42	0.25	0.52	0.39	0.01	0.52	0.16	0.81	-0.26	-0.04	-0.21	0.22	-0.15	0.09	0.15	0.15	-0.03	0.15	0.72	-0.04
Property Plant And Equipment Net	0.71	0.69	0.68	0.68	0.25		0.61	0.74	0.25	0.86	0.67	0.25	0.75	0.48	-0.84	0.74	0.69	-0.13	-0.82	0.69	0.86	0.68	0.36	0.9	-0.1	0.34
Net Debt	0.64	0.8	0.66	0.67	-0.42	0.61		0.63	-0.32	0.6	0.74	-0.31	0.74	-0.12	-0.57	0.8	0.92	-0.19	-0.7	0.69	0.58	0.62	0.46	0.78	-0.61	0.4
Retained Earnings	0.95	0.83	0.9	0.94	0.25	0.74	0.63		0.19	0.91	0.86	0.22	0.98	0.46	-0.93	0.88	0.8	-0.09	-0.93	0.94	0.74	0.92	0.67	0.89	0.12	0.65
Cash	0.21	0.26	0.16	0.17	0.52	0.25	-0.32	0.19		0.21	0.09	1.0	0.13	0.44	-0.34	0.17	-0.1	0.05	-0.21	0.16	0.31	0.23	0.08	0.07	0.49	0.01
Non Current Assets Total	0.85	0.74	0.79	0.82	0.39	0.86	0.6	0.91	0.21		0.78	0.22	0.91	0.65	-0.88	0.79	0.73	-0.02	-0.87	0.82	0.83	0.8	0.59	0.95	0.04	0.53
Non Currrent Assets Other	0.8	0.84	0.75	0.79	0.01	0.67	0.74	0.86	0.09	0.78		0.11	0.87	0.17	-0.8	0.88	0.88	-0.26	-0.84	0.81	0.67	0.77	0.61	0.81	-0.17	0.59
Cash And Short Term Investments	0.23	0.28	0.18	0.18	0.52	0.25	-0.31	0.22	1.0	0.22	0.11		0.16	0.44	-0.35	0.18	-0.09	0.05	-0.22	0.18	0.3	0.24	0.1	0.07	0.49	0.03
Net Receivables	0.95	0.88	0.91	0.94	0.16	0.75	0.74	0.98	0.13	0.91	0.87	0.16		0.4	-0.9	0.9	0.86	-0.06	-0.94	0.95	0.76	0.93	0.66	0.92	-0.01	0.62
Good Will	0.42	0.13	0.35	0.37	0.81	0.48	-0.12	0.46	0.44	0.65	0.17	0.44	0.4		-0.49	0.18	0.08	0.22	-0.39	0.35	0.5	0.38	0.21	0.46	0.54	0.16
Common Stock Shares Outstanding	-0.91	-0.77	-0.88	-0.89	-0.26	-0.84	-0.57	-0.93	-0.34	-0.88	-0.8	-0.35	-0.9	-0.49		-0.88	-0.77	0.04	0.95	-0.89	-0.83	-0.9	-0.47	-0.89	-0.14	-0.53
Non Current Liabilities Total	0.89	0.92	0.87	0.88	-0.04	0.74	0.8	0.88	0.17	0.79	0.88	0.18	0.9	0.18	-0.88		0.91	-0.15	-0.92	0.9	0.78	0.88	0.49	0.87	-0.17	0.52
Inventory	0.79	0.87	0.79	0.8	-0.21	0.69	0.92	0.8	-0.1	0.73	0.88	-0.09	0.86	0.08	-0.77	0.91		-0.2	-0.85	0.82	0.69	0.77	0.46	0.86	-0.34	0.47
Other Current Assets	0.14	-0.21	0.22	0.16	0.22	-0.13	-0.19	-0.09	0.05	-0.02	-0.26	0.05	-0.06	0.22	0.04	-0.15	-0.2		0.04	0.12	0.0	0.18	-0.39	-0.12	0.35	-0.3
Other Stockholder Equity	-0.93	-0.83	-0.92	-0.92	-0.15	-0.82	-0.7	-0.93	-0.21	-0.87	-0.84	-0.22	-0.94	-0.39	0.95	-0.92	-0.85	0.04		-0.93	-0.8	-0.92	-0.47	-0.91	-0.03	-0.4
Total Liab	1.0	0.84	0.99	1.0	0.09	0.69	0.69	0.94	0.16	0.82	0.81	0.18	0.95	0.35	-0.89	0.9	0.82	0.12	-0.93		0.76	0.99	0.52	0.84	0.08	0.56
Property Plant And Equipment Gross	0.77	0.7	0.75	0.76	0.15	0.86	0.58	0.74	0.31	0.83	0.67	0.3	0.76	0.5	-0.83	0.78	0.69	0.0	-0.8	0.76		0.75	0.38	0.84	0.02	0.41
Total Current Assets	1.0	0.81	1.0	1.0	0.15	0.68	0.62	0.92	0.23	0.8	0.77	0.24	0.93	0.38	-0.9	0.88	0.77	0.18	-0.92	0.99	0.75		0.46	0.8	0.17	0.51
Short Term Debt	0.51	0.63	0.41	0.52	-0.03	0.36	0.46	0.67	0.08	0.59	0.61	0.1	0.66	0.21	-0.47	0.49	0.46	-0.39	-0.47	0.52	0.38	0.46		0.54	-0.18	0.77
Intangible Assets	0.84	0.8	0.8	0.82	0.15	0.9	0.78	0.89	0.07	0.95	0.81	0.07	0.92	0.46	-0.89	0.87	0.86	-0.12	-0.91	0.84	0.84	0.8	0.54		-0.18	0.51
Accounts Payable	0.15	-0.26	0.13	0.11	0.72	-0.1	-0.61	0.12	0.49	0.04	-0.17	0.49	-0.01	0.54	-0.14	-0.17	-0.34	0.35	-0.03	0.08	0.02	0.17	-0.18	-0.18		-0.05
Common Stock Total Equity	0.55	0.55	0.48	0.55	-0.04	0.34	0.4	0.65	0.01	0.53	0.59	0.03	0.62	0.16	-0.53	0.52	0.47	-0.3	-0.4	0.56	0.41	0.51	0.77	0.51	-0.05

Click cells to compare fundamentals

Automatic Data Account Relationship Matchups

Automatic Data fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	39.2B	48.8B	63.1B	51.0B	58.6B	61.5B
Short Long Term Debt Total	2.3B	3.3B	3.5B	3.3B	3.8B	4.0B
Other Current Liab	28.8B	37.7B	54.7B	38.6B	44.4B	46.7B
Total Current Liabilities	30.1B	38.1B	55.2B	42.8B	49.2B	51.6B
Total Stockholder Equity	5.8B	5.7B	3.2B	3.5B	4.0B	4.3B
Property Plant And Equipment Net	1.2B	1.1B	1.1B	1.1B	1.2B	711.6M
Net Debt	440.5M	753M	2.1B	1.3B	1.1B	1.2B
Retained Earnings	18.4B	19.5B	20.7B	22.1B	25.4B	26.7B
Cash	1.9B	2.6B	1.4B	2.1B	2.4B	1.4B
Non Current Assets Total	7.6B	8.0B	8.3B	8.8B	10.1B	7.7B
Non Currrent Assets Other	2.9B	3.3B	3.3B	4.0B	4.6B	4.6B
Cash And Short Term Investments	1.9B	2.6B	1.4B	2.1B	2.4B	1.6B
Net Receivables	2.4B	2.7B	3.2B	3.0B	3.5B	3.6B
Good Will	2.3B	2.3B	2.3B	2.3B	2.7B	1.9B
Common Stock Shares Outstanding	432.7M	428.1M	421.1M	415.7M	374.1M	434.3M
Liabilities And Stockholders Equity	39.2B	48.8B	63.1B	51.0B	58.6B	61.5B
Non Current Liabilities Total	3.3B	5.0B	4.7B	4.7B	5.4B	4.8B
Inventory	26.7B	34.9B	49.6B	36.3B	41.8B	43.9B
Other Current Assets	506.2M	533.4M	50.2B	743.9M	855.5M	812.7M
Other Stockholder Equity	(12.7B)	(13.9B)	(15.5B)	(16.4B)	(14.7B)	(14.0B)
Total Liab	33.4B	43.1B	59.8B	47.5B	54.6B	57.3B
Property Plant And Equipment Gross	703M	1.1B	1.1B	1.1B	1.2B	697.1M
Total Current Assets	31.6B	40.7B	54.8B	42.2B	48.5B	50.9B
Accumulated Other Comprehensive Income	(14.8M)	10.6M	(2.0B)	(2.3B)	(2.1B)	(2.0B)
Short Term Debt	1.0B	23.5M	136.4M	3.8B	4.4B	4.6B
Intangible Assets	1.2B	1.2B	1.3B	1.3B	1.5B	1.1B
Accounts Payable	102M	141.1M	110.2M	96.8M	111.3M	138.1M
Short Term Investments	0.0	10.4M	47M	14.7M	13.2M	12.6M
Other Liab	1.9B	1.7B	1.3B	1.4B	1.2B	1.2B
Other Assets	2.9B	3.3B	3.5B	4.0B	3.6B	5.1B
Long Term Debt	1.0B	3.0B	3.0B	3.0B	3.4B	3.6B
Treasury Stock	(14.1B)	(15.4B)	(17.3B)	(18.5B)	(16.6B)	(15.8B)
Property Plant Equipment	703.9M	1.1B	1.1B	681.4M	783.6M	809.7M
Current Deferred Revenue	212.5M	203.9M	188.2M	188.6M	169.7M	226.8M
Net Tangible Assets	2.2B	2.1B	(408.3M)	(173.9M)	(156.5M)	(148.7M)
Retained Earnings Total Equity	18.4B	19.5B	20.7B	22.1B	25.4B	17.1B
Capital Surpluse	1.3B	1.5B	1.8B	2.1B	2.4B	2.5B

Pair Trading with Automatic Data

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Automatic Data position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Automatic Data will appreciate offsetting losses from the drop in the long position's value.

Moving against Automatic Stock

0.59	LNZA	LanzaTech Global Financial Report 20th of May 2024	Pair Corr
0.57	VIRC	Virco Manufacturing Report 26th of April 2024	Pair Corr
0.55	DSS	DSS Inc Financial Report 21st of May 2024	Pair Corr
0.53	BE	Bloom Energy Corp Financial Report 14th of May 2024	Pair Corr
0.41	BR	Broadridge Financial Financial Report 7th of May 2024	Pair Corr

The ability to find closely correlated positions to Automatic Data could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Automatic Data when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Automatic Data - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Automatic Data Processing to buy it.

The correlation of Automatic Data is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Automatic Data moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Automatic Data Processing moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Automatic Data can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

When determining whether Automatic Data Processing is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Automatic Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Automatic Data Processing Stock. Highlighted below are key reports to facilitate an investment decision about Automatic Data Processing Stock:

How To Invest In Automatic

Details

Is Automatic Stock a good investment?

Details

What is Automatic Data's Net Worth?

Details

Largest Human Resource & Employment Services Companies

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Largest Commercial & Professional Services Companies

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Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Automatic Data Processing. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.

Note that the Automatic Data Processing information on this page should be used as a complementary analysis to other Automatic Data's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Complementary Tools for Automatic Stock analysis

When running Automatic Data's price analysis, check to measure Automatic Data's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Automatic Data is operating at the current time. Most of Automatic Data's value examination focuses on studying past and present price action to predict the probability of Automatic Data's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Automatic Data's price. Additionally, you may evaluate how the addition of Automatic Data to your portfolios can decrease your overall portfolio volatility.

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Is Automatic Data's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Automatic Data. If investors know Automatic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Automatic Data listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

0.092

Dividend Share

5.15

Earnings Share

8.59

Revenue Per Share

45.09

Quarterly Revenue Growth

0.063

The market value of Automatic Data Processing is measured differently than its book value, which is the value of Automatic that is recorded on the company's balance sheet. Investors also form their own opinion of Automatic Data's value that differs from its market value or its book value, called intrinsic value, which is Automatic Data's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Automatic Data's market value can be influenced by many factors that don't directly affect Automatic Data's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Automatic Data's value and its price as these two are different measures arrived at by different means. Investors typically determine if Automatic Data is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Automatic Data's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Automatic Operating Income vs Gross Profit Analysis

Operating Income vs Gross Profit

Operating Income vs Gross Profit Correlation Analysis

Correlation Coefficient

Operating Income

Gross Profit

Automatic Data fundamental ratios Correlations

Automatic Data Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Automatic Data fundamental ratios Accounts

Pair Trading with Automatic Data

Moving against Automatic Stock

Complementary Tools for Automatic Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Total Current Liabilities	+ 1.0	Total Assets
Total Liab	+ 1.0	Total Assets
Total Current Assets	+ 1.0	Total Assets
Total Current Assets	+ 1.0	Other Current Liab
Total Liab	+ 1.0	Total Current Liabilities
Total Current Assets	+ 1.0	Total Current Liabilities

Other Stockholder Equity	- 0.94	Net Receivables
Total Liab	- 0.93	Other Stockholder Equity
Other Stockholder Equity	- 0.93	Retained Earnings
Common Stock Shares Outstanding	- 0.93	Retained Earnings
Other Stockholder Equity	- 0.93	Total Assets
Total Current Assets	- 0.92	Other Stockholder Equity