Automatic Data Processing Inc (ADP)

The analysis of Automatic Data Processing Inc.'s number of days of payables over the specified periods indicates a notable reduction followed by a stabilization in the company's accounts payable cycle. On June 30, 2021, the company maintained an average of 6.41 days payable period, which decreased significantly to 4.59 days by June 30, 2022. This decline suggests that the company was able to settle its obligations more quickly during that year, potentially reflecting improved cash flow management or suppliers' terms favoring faster payments. The downward trend continued into 2023, with the payable period further shortening to 3.84 days. This decreased duration persisted into June 30, 2024, with a marginal pair of days at 3.82 days, indicating a stabilization at a relatively low level. However, by June 30, 2025, the payable period increased again to 6.11 days, approaching the earlier levels observed in 2021. This uptick may signal a strategic change in the company's payment practices, extended payment terms with suppliers, or adjustments in cash management strategies. Overall, the fluctuations reflect responsive shifts in the company's liquidity management and supplier relations, with recent data suggesting a trend towards lengthening the payable period after a phase of shorter payment cycles.

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Jun 30, 2025