ADPNEUTRAL

ADP Debt-to-Equity Ratio Analysis

0.63x

Higher than 52% of Industrials sector peers

Updated 3038h ago·SEC filings & market data

Key Takeaway

Automatic Data Processing (ADP) has a Debt-to-Equity ratio of 0.63x, meaning that for every dollar of shareholder equity, the company carries 63 cents of debt — a measure of how much leverage it uses to finance its operations.

Sector Performance

52th percentile

ADP

0.63x

Sector Median

0.62x

Sector Avg

0.69x

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Deep Analysis

This is below the Industrials sector median of 0.78x, placing ADP at the 47th percentile among its sector peers, indicating a slightly lower reliance on debt compared to the typical company in the industry. The ratio has been perfectly stable over the past eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. The combination of a moderate debt level and a flat trend suggests no change in financial risk from leverage, offering neither increasing vulnerability nor improving strength on this front. This metric supports the overall NEUTRAL verdict because it aligns with a balanced risk profile — ADP is not overleveraged, but also shows no signs of deleveraging or strategic shift.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about ADP?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does ADP's Debt-to-Equity Ratio compare to its sector?

ADP's Debt-to-Equity Ratio of 0.63x compares to a Industrials sector median of 0.62x, placing it in the 52th percentile.

Who are ADP's closest peers by Debt-to-Equity Ratio?

The closest Industrials peers by Debt-to-Equity Ratio include: PWR (0.63x), ROP (0.61x), RTX (0.56x), CHRW (0.79x), JOBY (0.36x).

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Learn More About Debt-to-Equity Ratio

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Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.