Automatic Data Processing Inc (ADP)

Number of days of payables

		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
Payables turnover		146.96	171.99	187.45	210.88	144.68	185.45	159.82	162.47	119.52	157.99	121.88	159.05	86.13	97.28	88.19	82.64	82.80	72.55	61.95	74.80
Number of days of payables	days	2.48	2.12	1.95	1.73	2.52	1.97	2.28	2.25	3.05	2.31	2.99	2.29	4.24	3.75	4.14	4.42	4.41	5.03	5.89	4.88

June 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 146.96
= 2.48

The number of days of payables for Automatic Data Processing Inc has shown fluctuating trend over the past few quarters. The company's payables were relatively stable around 2-3 days in 2022, but increased to over 4 days in the third and fourth quarters of 2022. This increase continued into 2023, reaching a peak of 5.89 days by September 2019.

However, in more recent quarters, there has been a declining trend in the number of days of payables, dropping to as low as 1.73 days in September 2023, before slightly increasing in subsequent quarters. The most recent data for June 30, 2024, shows a number of days of payables at 2.48 days.

Overall, the number of days of payables indicates the average number of days it takes for the company to pay its suppliers. A lower number typically suggests that the company is paying its suppliers more quickly, potentially indicating strong cash management practices, while a higher number may suggest that the company is taking longer to settle its payables. It is important to monitor this ratio over time to assess the company's ability to effectively manage its working capital and relationships with suppliers.