Automatic Data Processing Inc (ADP)

Fixed asset turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	20,560,900	19,202,600	18,012,200	16,498,300	15,005,400
Property, plant and equipment	US$ in thousands	—	—	681,400	1,103,500	1,146,700
Fixed asset turnover		—	—	26.43	14.95	13.09

June 30, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $20,560,900K ÷ $—K
= —

The fixed asset turnover ratio for Automatic Data Processing Inc. demonstrates a notable upward trend over the period from June 30, 2021, to June 30, 2023. Specifically, the ratio increased from 13.09 in 2021 to 14.95 in 2022, indicating a moderate improvement in the company's efficiency in utilizing its fixed assets to generate revenue. The subsequent jump to 26.43 in 2023 signifies a substantial enhancement in asset utilization efficiency, more than doubling the ratio from the previous year.

This significant increase suggests that the company has either optimized its fixed asset base, generated higher revenues relative to its fixed assets, or a combination of both. The sharp rise in fixed asset turnover may reflect improvements in operational efficiency, technological upgrades, or strategic asset management practices.

No data is available for the fiscal years ending June 30, 2024, and June 30, 2025, which precludes further analysis of the trend beyond 2023. Nevertheless, the marked increase by 2023 underscores a period of improved asset productivity, which is a positive sign for stakeholders assessing the company's operational efficiency during this timeframe.