Automatic Data Processing, Inc., also known as ADP, is a provider of human resources management software and services. With around 620,000 customers, ADP is one of the world's largest independent IT service companies and is considered a leading provider of HR services such as payroll, time recording and travel expense management.
According to Automatic Data Processing's latest financial reports and stock price the company's current Operating Margin is 25.37%. At the end of 2023 the company had an Operating Margin of 25.80%.
The operating margin is a key indicator to assess the profitability of a company. Higher operating margins are generaly better as they show that a company is able to sell its products or services for much more than their production costs. The operating margin is calculated by dividing a company's earnings by its revenue.