Automatic Data Processing Inc (ADP)

Days of inventory on hand (DOH)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Inventory turnover		—	—	—	—	—	0.20	—	0.28	—	—	—	0.28	0.18	0.15	0.18	0.18	0.23	0.19	0.21	0.26
DOH	days	—	—	—	—	—	1,842.92	—	1,313.14	—	—	—	1,296.61	2,024.16	2,425.44	1,996.28	2,084.09	1,586.39	1,910.94	1,704.76	1,388.63

June 30, 2025 calculation

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

The days of inventory on hand (DOH) for Automatic Data Processing Inc. have exhibited significant fluctuations over the observed period. Initially, on September 30, 2020, the DOH stood at approximately 1,388.63 days, indicating that the company held inventory for over four years—an unusually high figure for a service-oriented enterprise, which typically maintains lower inventory levels.

During the subsequent quarter, the DOH increased markedly to 1,704.76 days, followed by a further rise to 1,910.94 days by the March 31, 2021 quarter. This upward trend suggests an accumulation or prolonged holding of inventory during this timeframe, which could reflect strategic stockpiling, operational inefficiencies, or accounting policy changes.

In the latter half of 2021, the DOH continued to remain elevated, reaching a peak of 2,084.09 days on September 30, 2021, and slightly declining to 1,996.28 days by December 31, 2021. The trend persisted into the first quarter of 2022, where the DOH increased substantially to 2,425.44 days, signifying an extended inventory holding period.

However, a notable decline is observed in the second half of 2022, with the DOH decreasing to approximately 1,296.61 days as of September 30, 2022. This indicates a reduction in inventory holding durations and may reflect operational adjustments, inventory management improvements, or changes in business activity levels.

Data beyond this point remains incomplete, with no recorded DOH for the subsequent quarters of 2022 through 2025, thus limiting further trend analysis. Nonetheless, the available figures demonstrate periods of significant inventory accumulation followed by phases of reduction, highlighting volatility in inventory management practices over the analyzed interval.

Overall, the DOH figures for Automatic Data Processing Inc. reveal periods of elevated inventory holding times inconsistent with typical service-based operations, suggesting potential underlying operational, strategic, or reporting factors impacting inventory levels during these years.