Automatic Data Processing Inc (ADP)

Days of inventory on hand (DOH)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Inventory turnover		—	—	0.27	0.35	0.32
DOH	days	—	—	1,373.63	1,048.37	1,154.32

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

Automatic Data Processing Inc's days of inventory on hand (DOH) has exhibited fluctuations over the past five years. In 2020, the company had 1,154.32 days worth of inventory on hand, which increased significantly to 1,048.37 days in 2021. This was followed by a notable spike in 2022 when the DOH surged to 1,373.63 days, indicating a substantial increase in the time it takes to sell off inventory.

In subsequent years, there is no data available for 2023 and 2024, which makes it challenging to assess the current trend accurately. However, the significant jump in 2022 may suggest potential issues with inventory management efficiency, capital tied up in inventory, or changes in demand patterns.

Further analysis would be required to understand the reasons behind these fluctuations and to determine whether the company is effectively managing its inventory levels to optimize working capital and operational performance.