Automatic Data Processing Inc (ADP)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.74	5.69	5.68	5.89	5.60	5.46	5.51	5.92	5.98	5.75	5.45	5.74	5.20	4.96	5.74	5.55	5.50	5.30	5.81	5.85
DSO	days	63.54	64.10	64.25	62.01	65.16	66.79	66.23	61.70	60.99	63.49	66.92	63.55	70.14	73.66	63.62	65.79	66.34	68.92	62.78	62.38

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.74
= 63.54

The analysis of Automatic Data Processing Inc.'s Days of Sales Outstanding (DSO) from September 2020 through June 2025 reveals a relatively stable receivables collection period with some fluctuations over the period observed.

Initially, the DSO was approximately 62.4 days as of September 2020, indicating that the company generally collects receivables within about two months. During the subsequent quarters, the DSO remained within a narrow range, fluctuating slightly around the 62 to 66 days level, suggesting consistent credit and collection practices.

Between March 2021 and December 2021, there was a modest increase, reaching up to approximately 73.66 days in March 2022, which signifies a slight elongation in the collection period. However, this spike was temporary, and by June 2022, the DSO had decreased back to around 70.14 days, indicating some recovery in collection efficiency.

From September 2022 onward, the DSO hovered mostly between 63.5 and 67 days, suggesting stability in receivables management. Notably, there is no clear trend of deterioration or improvement beyond this range over the next years, with minor fluctuations attributed to seasonal or operational factors.

In the latest reported quarter as of June 2025, the DSO stood at approximately 63.5 days, consistent with historical averages, and still indicating a receivables collection period in line with industry standards for similar service-based companies.

Overall, the company has demonstrated relatively stable receivables collection periods over the analyzed period, maintaining a DSO generally between 62 and 67 days. This consistency reflects effective credit policies and collection processes, with occasional short-term fluctuations likely caused by seasonal variations or minor operational adjustments.