Stock Analysis on Net

Automatic Data Processing Inc. (NASDAQ:ADP)

This company has been moved to the archive! The financial data has not been updated since April 29, 2022.

Analysis of Liquidity Ratios

Microsoft Excel

Liquidity Ratios (Summary)

Automatic Data Processing Inc., liquidity ratios

Microsoft Excel
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Current ratio 1.07 1.05 1.05 1.05 1.10 1.10
Quick ratio 1.06 1.03 1.04 1.03 1.07 1.08
Cash ratio 0.98 0.95 0.96 0.96 1.01 1.03

Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Automatic Data Processing Inc. current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Automatic Data Processing Inc. quick ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Automatic Data Processing Inc. cash ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Current Ratio

Automatic Data Processing Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in thousands)
Current assets 40,741,800 31,564,100 34,342,300 32,050,000 32,658,700 39,500,400
Current liabilities 38,094,800 30,126,600 32,627,700 30,413,600 29,815,900 35,847,400
Liquidity Ratio
Current ratio1 1.07 1.05 1.05 1.05 1.10 1.10
Benchmarks
Current Ratio, Competitors2
Accenture PLC 1.25 1.40 1.40
Adobe Inc. 1.25 1.48 0.79 1.13
Autodesk Inc. 0.83 0.83 0.70
Cadence Design Systems Inc. 1.77 1.86 1.74
CrowdStrike Holdings Inc. 2.65 2.38
International Business Machines Corp. 0.88 0.98 1.02
Intuit Inc. 1.94 2.26 1.83
Microsoft Corp. 2.08 2.52 2.53
Oracle Corp. 2.30 3.03 2.49
Palo Alto Networks Inc. 0.91 1.91 1.78
Salesforce Inc. 1.23 1.08 0.95
ServiceNow Inc. 1.05 1.21 1.03
Synopsys Inc. 1.16 1.19 0.99 0.73
Current Ratio, Sector
Software & Services 1.66 1.90 1.83
Current Ratio, Industry
Information Technology 1.64 1.85 1.77

Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).

1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 40,741,800 ÷ 38,094,800 = 1.07

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Automatic Data Processing Inc. current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Quick Ratio

Automatic Data Processing Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in thousands)
Cash and cash equivalents 2,575,200 1,908,500 1,949,200 2,170,000 2,780,400 3,191,100
Accounts receivable, net of allowance for doubtful accounts 2,727,400 2,441,300 2,439,300 1,984,200 1,703,600 1,742,800
Funds held for clients 34,905,800 26,708,100 29,434,200 27,137,800 27,291,500 33,841,200
Total quick assets 40,208,400 31,057,900 33,822,700 31,292,000 31,775,500 38,775,100
 
Current liabilities 38,094,800 30,126,600 32,627,700 30,413,600 29,815,900 35,847,400
Liquidity Ratio
Quick ratio1 1.06 1.03 1.04 1.03 1.07 1.08
Benchmarks
Quick Ratio, Competitors2
Accenture PLC 1.14 1.29 1.29
Adobe Inc. 1.11 1.34 0.70 1.06
Autodesk Inc. 0.77 0.78 0.62
Cadence Design Systems Inc. 1.47 1.60 1.51
CrowdStrike Holdings Inc. 2.50 2.18
International Business Machines Corp. 0.67 0.83 0.87
Intuit Inc. 1.65 2.04 1.44
Microsoft Corp. 1.90 2.33 2.35
Oracle Corp. 2.15 2.83 2.31
Palo Alto Networks Inc. 0.88 1.85 1.72
Salesforce Inc. 1.11 0.95 0.82
ServiceNow Inc. 1.01 1.16 0.98
Synopsys Inc. 0.89 0.94 0.73 0.61
Quick Ratio, Sector
Software & Services 1.50 1.74 1.68
Quick Ratio, Industry
Information Technology 1.38 1.59 1.54

Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).

1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 40,208,400 ÷ 38,094,800 = 1.06

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Automatic Data Processing Inc. quick ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Cash Ratio

Automatic Data Processing Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in thousands)
Cash and cash equivalents 2,575,200 1,908,500 1,949,200 2,170,000 2,780,400 3,191,100
Funds held for clients 34,905,800 26,708,100 29,434,200 27,137,800 27,291,500 33,841,200
Total cash assets 37,481,000 28,616,600 31,383,400 29,307,800 30,071,900 37,032,300
 
Current liabilities 38,094,800 30,126,600 32,627,700 30,413,600 29,815,900 35,847,400
Liquidity Ratio
Cash ratio1 0.98 0.95 0.96 0.96 1.01 1.03
Benchmarks
Cash Ratio, Competitors2
Accenture PLC 0.52 0.67 0.55
Adobe Inc. 0.84 1.09 0.51 0.75
Autodesk Inc. 0.57 0.57 0.41
Cadence Design Systems Inc. 1.13 1.17 1.06
CrowdStrike Holdings Inc. 2.22 1.85
International Business Machines Corp. 0.22 0.36 0.24
Intuit Inc. 1.46 2.00 1.39
Microsoft Corp. 1.47 1.89 1.93
Oracle Corp. 1.93 2.50 2.03
Palo Alto Networks Inc. 0.57 1.39 1.37
Salesforce Inc. 0.67 0.54 0.39
ServiceNow Inc. 0.67 0.83 0.61
Synopsys Inc. 0.65 0.58 0.42 0.34
Cash Ratio, Sector
Software & Services 1.10 1.31 1.22
Cash Ratio, Industry
Information Technology 0.96 1.18 1.10

Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).

1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 37,481,000 ÷ 38,094,800 = 0.98

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Automatic Data Processing Inc. cash ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.