Automatic Data Processing Inc (ADP)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	19,202,800	18,808,000	18,506,700	18,268,100	18,012,100	17,556,800	17,162,500	16,847,400	16,499,700	16,085,300	15,679,100	15,353,500	15,009,000	14,617,400	14,577,100	14,564,800	14,589,800	14,692,300	14,472,700	14,295,600
Property, plant and equipment	US$ in thousands	685,600	676,500	671,000	660,400	681,400	663,500	655,100	645,100	652,600	650,500	644,500	648,700	684,500	701,400	692,700	701,500	703,900	743,100	761,300	767,100
Fixed asset turnover		28.01	27.80	27.58	27.66	26.43	26.46	26.20	26.12	25.28	24.73	24.33	23.67	21.93	20.84	21.04	20.76	20.73	19.77	19.01	18.64

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $19,202,800K ÷ $685,600K
= 28.01

The fixed asset turnover ratio for Automatic Data Processing Inc has been consistently increasing over the past few years, indicating that the company is generating more revenue per dollar invested in fixed assets. This trend suggests that the company has been efficiently utilizing its fixed assets to generate sales.

In the most recent period, as of June 30, 2024, the fixed asset turnover ratio was 28.01, the highest among the listed periods. This implies that for every dollar invested in fixed assets, the company generated $28.01 in revenue.

Overall, the upward trend in the fixed asset turnover ratio reflects the effectiveness of Automatic Data Processing Inc in using its fixed assets efficiently to drive revenue growth. This efficiency can be attributed to better asset utilization, operational effectiveness, and possibly technology upgrades that have enhanced productivity.