Automatic Data Processing Inc (ADP)

Number of days of payables

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Payables turnover		146.95	144.68	119.52	86.13	82.80
Number of days of payables	days	2.48	2.52	3.05	4.24	4.41

June 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 146.95
= 2.48

Automatic Data Processing Inc's number of days of payables has been showing a decreasing trend over the past five years. The company's ability to pay off its accounts payable has improved consistently, with the number of days of payables reducing from 4.41 days in 2020 to 2.48 days in 2024. This indicates that the company is taking fewer days to settle its outstanding payables, which can be a positive sign of good financial health and effective cash management. Overall, the decreasing trend in the number of days of payables suggests that Automatic Data Processing Inc has been managing its accounts payable efficiently in recent years.