Automatic Data Processing Inc (ADP)

Days of inventory on hand (DOH)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Inventory turnover		—	0.30	—	0.41	—	—	—	0.41	0.27	0.22	0.27	0.26	0.35	0.26	0.27	0.31	0.32	0.27	0.22	0.38
DOH	days	—	1,202.31	—	892.74	—	—	—	894.79	1,373.64	1,649.13	1,327.82	1,380.70	1,048.36	1,387.47	1,339.60	1,189.63	1,154.32	1,343.17	1,623.08	959.43

June 30, 2024 calculation

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

The days of inventory on hand (DOH) for Automatic Data Processing Inc has fluctuated significantly over the past five years based on the available data. For the most recent quarter ended June 30, 2024, the company reported a DOH of 1,202.31 days, indicating a substantial increase in the number of days it takes for the company to sell its inventory.

It is noteworthy that there are gaps in the data, with several quarters not providing specific DOH figures. When looking at the historical trend, there have been instances of exceptionally high DOH numbers, such as the DOH of 1,649.13 days in March 2022, suggesting potential inefficiencies in inventory management during those periods.

The high DOH numbers can be indicative of excess inventory levels, slow inventory turnover, or challenges in demand forecasting. A consistently high DOH may tie up working capital, increase storage costs, and potentially lead to obsolescence risks.

Overall, the fluctuating nature of Automatic Data Processing Inc's DOH highlights the importance of closely monitoring inventory management practices to ensure optimal efficiency and alignment with demand patterns.