Automatic Data Processing Inc (ADP)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	14,783,700	14,550,600	14,396,100	14,213,000	14,005,000	13,871,700	13,632,900	13,436,000	13,171,400	12,907,800	12,614,700	12,374,300	12,152,900	10,915,000	10,044,900	9,189,300	8,445,200	8,379,100	8,232,600	8,138,700
Inventory	US$ in thousands	—	47,929,500	0	34,762,900	0	0	0	32,937,900	49,569,200	58,319,600	45,890,400	46,808,600	34,905,800	41,491,000	36,866,200	29,950,300	26,708,100	30,834,400	36,608,600	21,393,200
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

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,783,700K ÷ $—K
= —

The inventory turnover for Automatic Data Processing Inc has fluctuated over the past several quarters. For the most recent quarter ending June 30, 2024, the inventory turnover ratio was not provided. In the preceding quarter, ending March 31, 2024, the inventory turnover was 0.30, indicating that the company turned over its inventory approximately 0.30 times during that period.

A low inventory turnover ratio can suggest inefficiency in managing inventory, potentially leading to excess or obsolete inventory. The inventory turnover improved in the quarter ending September 30, 2023, with a ratio of 0.41. This indicates that the company was able to sell and replace its inventory more frequently during that period compared to the previous quarter.

Looking further back, there was consistency in inventory turnover ratios recorded in the quarters ending Dec 31, 2022, and Mar 31, 2022, both at 0.27. However, there was a notable increase in inventory turnover in the quarter ending Dec 31, 2021, with a ratio of 0.27.

Analyzing the trend, the company experienced fluctuations in inventory turnover ratios, with some quarters showing improvements while others remained relatively stable or decreased. This variability could be influenced by factors such as changes in demand, inventory management strategies, and market conditions.

Further analysis and comparison with industry benchmarks or historical performance would be beneficial to assess the effectiveness of Automatic Data Processing Inc's inventory management practices and identify areas for potential improvement.