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  "docSlug": "1c9c0f306991",
  "documentTitle": "Automatic Data Processing (ADP) (ADP)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2017-08-17 00:00:00",
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  "pageNumber": 67,
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  "notes": "Uses a stacked bar chart to illustrate the discrepancy in implied profitability.",
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      "text": "If ADP earned Paychex’s ~41% SMB margin(1) on its ~$2bn SMB business, it would imply ~$820mm of operating profit. SMB-only profits would therefore account for ~50%+ of total Employer Services total profit",
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      "text": "operating margin: 12%",
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      "text": "If ADP earned Paychex's ~41% SMB margin(1) on its ~$2bn SMB business, it would imply ~$820mm of operating profit. SMB-only profits would therefore account for ~50%+ of total Employer Services total profit. If true, this would imply the rest of the Employer Services business earns ~12% operating margins on $6.5bn of revenue",
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      "kind": "source-note",
      "text": "Note: Excludes float income. Paychex margins exclude pass-through costs. ADP's ~19% margins allocates corporate overhead as a percent of net operational revenue.",
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      "kind": "title",
      "text": "The Math Doesn't Add Up...",
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