Automatic Data Processing Inc (ADP)

The Days of Inventory on Hand (DOH) for Automatic Data Processing Inc. (ADP) over the specified periods demonstrates significant variability. As of June 30, 2021, the DOH was approximately 1,586.35 days, indicating that, on average, inventory was held for around 1,586 days before being sold or used, which suggests an exceptionally high level of inventory retention during that year. This unusually elevated figure could be attributed to specific operational factors, accounting practices, or anomalies in inventory management during that period.

By June 30, 2022, the DOH increased markedly to approximately 2,063.57 days. This escalation signifies an even longer duration of inventory hold-up, further emphasizing a trend of inventory accumulation or extended processing periods. The lengthened DOH could reflect changes in inventory policies, increased stockpiling, or disruptions in inventory turnover cycles.

Data for June 30, 2023, and subsequent years is not available, with the placeholders indicating missing values. This absence of data precludes further analysis of trends beyond 2022. The incomplete data hampers the ability to assess whether the trend observed between 2021 and 2022 continued, stabilized, or reversed in the following years.

Overall, the reported high DOH figures highlight a potential concern regarding inventory management efficiency, as extremely lengthy inventory holding periods can lead to increased carrying costs and reduced liquidity. However, due to the magnitude of the figures and potential data anomalies, these values should be interpreted cautiously, considering the context of ADP's operational environment, industry standards, and any unique accounting considerations during the relevant periods.

Peer comparison

Jun 30, 2025