Automatic Data Processing Inc (ADP)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	10,181,000	10,041,600	9,911,000	9,737,200	9,611,900	9,492,700	9,565,400	9,662,700	9,757,200	9,667,200	9,555,600	9,272,100	8,938,400	8,776,400	8,390,600	8,197,900	8,031,200	7,925,000	7,893,300	7,872,400
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
Inventory turnover		—	—	—	—	—	0.20	—	0.28	—	—	—	0.28	0.18	0.15	0.18	0.18	0.23	0.19	0.21	0.26

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,181,000K ÷ $—K
= —

The inventory turnover ratio for Automatic Data Processing Inc. demonstrates notable fluctuations over the observed periods. During the fiscal year ending September 30, 2020, the ratio was relatively low at 0.26, indicating that the company's inventory was sold and replaced approximately once every four months. This low turnover persisted into the subsequent quarters, with a slight decline to 0.21 at the end of 2020 and further diminishing to 0.19 by March 2021.

In the latter part of 2021, the ratio remained relatively stable at 0.18 through December 2021, suggesting minimal change in inventory management efficiency. A decline continued into the first quarter of 2022, with the ratio reaching 0.15, implying even less frequent inventory turnover. This downward trend persisted into June 2022, with a modest increase back to 0.18.

A significant change is observed in September 2022, when the inventory turnover ratio rose markedly to 0.28, nearly doubling from the previous quarter, signaling a potential improvement in inventory management or a shift in sales dynamics. However, subsequent data points in late 2022 and early 2023 are unavailable, with the ratio reverting to 0.20 as of March 2023.

From the data available for September 2023, the ratio again is recorded at 0.28, matching the level seen in the previous year’s September, indicating a possible stabilization or renewed efficiency in inventory turnover. Several quarters following this, data is not available, and thus, further trends cannot be conclusively identified.

Overall, the pattern indicates periods of low inventory turnover, typical of industries with high inventory levels or slow sales, punctuated by occasional increases suggesting intervals of improved inventory management or higher sales velocity. The fluctuations reflect some inconsistency in inventory efficiency, with notable improvements during certain periods but with significant gaps in the data beyond late 2023.