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 Long-term (Investment) Activity Ratios 

Microsoft Excel

Long-term Activity Ratios (Summary)

Automatic Data Processing Inc., long-term (investment) activity ratios

Microsoft Excel
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Net fixed asset turnover 21.92 20.73 18.55 16.79 15.87 17.03
Net fixed asset turnover (including operating lease, right-of-use asset) 13.09 12.18 18.55 16.79 15.87 17.03
Total asset turnover 0.31 0.37 0.34 0.36 0.33 0.27
Equity turnover 2.65 2.54 2.63 3.85 3.11 2.60

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).

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Automatic Data Processing Inc. net fixed asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). Automatic Data Processing Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Automatic Data Processing Inc. total asset turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Automatic Data Processing Inc. equity turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Net Fixed Asset Turnover

Automatic Data Processing Inc., net fixed asset turnover 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)
Revenues 15,005,400 14,589,800 14,175,200 13,325,800 12,379,800 11,667,800
Property, plant and equipment, net 684,500 703,900 764,200 793,700 779,900 685,000
Long-term Activity Ratio
Net fixed asset turnover1 21.92 20.73 18.55 16.79 15.87 17.03
Benchmarks
Net Fixed Asset Turnover, Competitors2
Accenture PLC 30.83 28.68 31.06
Adobe Inc. 9.44 8.48 8.64 8.40
Autodesk Inc. 19.66 20.25 17.17
Cadence Design Systems Inc. 9.77 8.62 8.47
CrowdStrike Holdings Inc. 5.24 3.54
International Business Machines Corp. 10.07 7.33 7.71
Intuit Inc. 12.35 10.46 8.70
Microsoft Corp. 2.81 3.24 3.45
Oracle Corp. 5.74 6.26 6.32
Palo Alto Networks Inc. 13.37 9.79 9.80
Salesforce Inc. 8.64 7.20 6.48
ServiceNow Inc. 7.70 6.85 7.39
Synopsys Inc. 8.90 7.62 7.82 10.09
Net Fixed Asset Turnover, Sector
Software & Services 4.74 5.18 5.54
Net Fixed Asset Turnover, Industry
Information Technology 4.45 4.24 4.29

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
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= 15,005,400 ÷ 684,500 = 21.92

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Automatic Data Processing Inc. net fixed asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Automatic Data Processing Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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)
Revenues 15,005,400 14,589,800 14,175,200 13,325,800 12,379,800 11,667,800
 
Property, plant and equipment, net 684,500 703,900 764,200 793,700 779,900 685,000
Operating lease right-of-use asset 462,200 493,700
Property, plant and equipment, net (including operating lease, right-of-use asset) 1,146,700 1,197,600 764,200 793,700 779,900 685,000
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 13.09 12.18 18.55 16.79 15.87 17.03
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
Accenture PLC 10.48 9.37 31.06
Adobe Inc. 7.46 6.42 8.64 8.40
Autodesk Inc. 6.22 5.45 17.17
Cadence Design Systems Inc. 6.85 6.04 6.21
CrowdStrike Holdings Inc. 4.30 3.54
International Business Machines Corp. 6.43 5.00 5.14
Intuit Inc. 8.30 8.00 8.70
Microsoft Corp. 2.37 2.70 2.87
Oracle Corp. 4.20 4.74 6.32
Palo Alto Networks Inc. 7.32 5.62 9.80
Salesforce Inc. 3.75 3.16 6.48
ServiceNow Inc. 4.34 4.06 3.98
Synopsys Inc. 4.35 3.88 7.82 10.09
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Software & Services 3.59 3.83 4.56
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Information Technology 3.79 3.60 4.00

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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 15,005,400 ÷ 1,146,700 = 13.09

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). Automatic Data Processing Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Total Asset Turnover

Automatic Data Processing Inc., total asset turnover 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)
Revenues 15,005,400 14,589,800 14,175,200 13,325,800 12,379,800 11,667,800
Total assets 48,772,500 39,165,500 41,887,700 37,088,700 37,180,000 43,670,000
Long-term Activity Ratio
Total asset turnover1 0.31 0.37 0.34 0.36 0.33 0.27
Benchmarks
Total Asset Turnover, Competitors2
Accenture PLC 1.17 1.20 1.45
Adobe Inc. 0.58 0.53 0.54 0.48
Autodesk Inc. 0.52 0.53 0.54
Cadence Design Systems Inc. 0.68 0.68 0.70
CrowdStrike Holdings Inc. 0.32 0.34
International Business Machines Corp. 0.43 0.47 0.51
Intuit Inc. 0.62 0.70 1.08
Microsoft Corp. 0.50 0.47 0.44
Oracle Corp. 0.31 0.34 0.36
Palo Alto Networks Inc. 0.42 0.38 0.44
Salesforce Inc. 0.32 0.31 0.43
ServiceNow Inc. 0.55 0.52 0.57
Synopsys Inc. 0.48 0.46 0.52 0.51
Total Asset Turnover, Sector
Software & Services 0.49 0.48 0.50
Total Asset Turnover, Industry
Information Technology 0.61 0.57 0.58

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
Total asset turnover = Revenues ÷ Total assets
= 15,005,400 ÷ 48,772,500 = 0.31

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Automatic Data Processing Inc. total asset turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Equity Turnover

Automatic Data Processing Inc., equity turnover 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)
Revenues 15,005,400 14,589,800 14,175,200 13,325,800 12,379,800 11,667,800
Stockholders’ equity 5,670,100 5,752,200 5,399,900 3,459,600 3,977,000 4,481,600
Long-term Activity Ratio
Equity turnover1 2.65 2.54 2.63 3.85 3.11 2.60
Benchmarks
Equity Turnover, Competitors2
Accenture PLC 2.59 2.61 3.00
Adobe Inc. 1.07 0.97 1.06 0.96
Autodesk Inc. 3.93
Cadence Design Systems Inc. 1.09 1.08 1.11
CrowdStrike Holdings Inc. 1.00 0.65
International Business Machines Corp. 3.03 3.57 3.70
Intuit Inc. 0.98 1.50 1.81
Microsoft Corp. 1.18 1.21 1.23
Oracle Corp. 7.73 3.24 1.81
Palo Alto Networks Inc. 6.71 3.09 1.83
Salesforce Inc. 0.51 0.50 0.85
ServiceNow Inc. 1.60 1.59 1.63
Synopsys Inc. 0.79 0.75 0.82 0.90
Equity Turnover, Sector
Software & Services 1.45 1.53 1.67
Equity Turnover, Industry
Information Technology 1.66 1.64 1.65

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
Equity turnover = Revenues ÷ Stockholders’ equity
= 15,005,400 ÷ 5,670,100 = 2.65

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Automatic Data Processing Inc. equity turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.