Automatic Data Processing, Inc. — Earnings Quality Grade C
ADP · Technology
Some red flags
Screening Summary
管理层信号
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 64 days, change -2 days YoY
AR growth 4.4% vs revenue growth 7.1%
Revenue 7.1%, CFFO 18.8%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -2.9% vs revenue 7.1%. Normal
SG&A/Gross Profit = 42.8%. Normal
Gross margin 46.0%, change +0.6pp. Stable
Cash Flow Quality
CFFO/NI = 1.21. Profits backed by cash
FCF $4.4B, FCF/NI = 1.08
Accruals ratio = -1.6%. Low accruals
Cash $7.8B covers 87% of debt $9.1B
Balance Sheet Health
Goodwill+Intangibles $4.9B = 79% of equity. Over 50%
Debt/EBITDA = 1.4x. Healthy
Other assets -4.5% vs revenue 7.1%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 32% YoY
Manipulation Score
M-Score = -2.44 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25