Automatic Data Processing

Transcription

1 Automatic Data Processing Professor Skown Team 7

2 Ranked 272 on the Fortune 500 list Tax filing and payroll processors wise ADP is one of the top in the entire world By itself ADP does 8,881.5 million dollars in sales

3 Sales Employees Brokerage Accounting Other

4 Sales United States Europe Canada Other

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6 Company Type Fiscal Year-End Public (NYSE: CEN) December 2006 Sales (mil.) $1, Year Sales Growth 7.3% 2006 Net Income (mil.) $ Year Net Income Growth 35.7% 2006 Employees 9,579 1 Year Employee Growth 1.5%

7 Company Type Fiscal Year-End Public (NYSE: ASF) December 2006 Sales (mil.) $1, Year Sales Growth 18.8% 2006 Net Income (mil.) $ Year Net Income Growth 55.1% 2006 Employees 104,325 1-Year Employee Growth 17.5%

8 Company Type Fiscal Year-End Public (NASDAQ (GS): PAYX) May 2007 Sales (mil.) $1, Year Sales Growth 12.7% 2007 Net Income (mil.) $ Year Net Income Growth 10.9% 2007 Employees 11,700 1-Year Employee Growth 7.3% PayChex is by far the biggest competitor, based on net and gross profits.

9 Income Statement Jun 07 Jun 06 Jun 05 Revenue 7, , ,499.1 Cost of Goods Sold 4, , ,969.5 Gross Profit 3, , ,529.6 Gross Profit Margin 47.6% 51.7% 53.3% SG&A Expense 1, , ,461.2 Depreciation & Amortization Operating Income 1, , ,644.0 Operating Margin 19.3% 18.9% 19.3% Nonoperating Income

10 Nonoperating Expenses Income Before Taxes 1, , ,677.9 Income Taxes Net Income After Taxes 1, , ,055.4 Continuing Operations 1, , ,055.4 Discontinued Operations Total Operations 1, , ,055.4 Total Net Income 1, , ,055.4 Net Profit Margin 14.6% 17.5% 12.4% Diluted EPS from Total Net Income ($)

11 Automatic Data Processing is one of the largest data processing companies in the world. It is constantly expanding all over the globe by purchasing other data processing companies. As more corporations and small business come into existence, the need for companies like ADP will become greater. As the company grows it continues to keep its web-business caught up with the company.

12 Outsourcing is a big part of ADP s great success, they are constantly expanding internationally. When there are economic struggles in America, the benefit of having small sectors of the company in foreign countries shows greatly. Competition with foreign countries is not very predominant with ADP because almost all of their competitors are located inside the United States.

13 the largest outsourcing companies in the world Automatic Data Processing, Inc has many subsidiaries in there corporation.

14 focuses on outsourced employer services to other companies payroll, benefits, and human resources management information processing services for brokerage firms and car dealers

15 focuses on the paperwork aspect of a business professional employer organization also known as PEO provides smaller businesses with employee related services

16 Focuses on doing background checks on potential employees Company does not mind working behind the scenes

17 June 2005 June 2006 June 2007 Revenue $8, $8, $7, Goods Sold $3, $ $4, Gross Profit $4, $4, $3, Margin Profit 53.3% 51.7% 47.6%

18 2006 : 46,000 employees Specific Employees : Weinbach: company chairman of the company: $857,500 & 2,640,000 Butler: President, CEO & director: makes $726,254 & $870,000 bonus.

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20 Creates co-employee relationship with clients by providing Services in human resources Regulatory compliance & tax administration Employee Benefits Payroll tax Risk management

21 Offer credit reports Criminal background checks Reference Checks Driving Records Workers Compensation histories

22 Outsource employer services such as Payroll Benefits Human resources management Offering info processing services

23 ADP s revenues have very noticeably gone up As of June, 2006 ADP held over $7 billion in revenues and employed over 46,000 people Expenses of the company includes operating expenses; systems development and programming costs; selling, general, and administrative costs; and interest expenses In 2006, their expenses came out to approximately $5.474 billion That year, ADP s profitability came out to about $1.5 billion For this year, ADP s projected revenues will be around $7.8 billion and their profitability will also rise from last year to about $1.7billion