Automatic Data Processing Inc (ADP)

Number of days of payables

		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
Payables turnover		60.21	68.64	53.17	67.06	95.55	112.21	124.55	143.36	100.80	129.24	112.02	112.12	81.11	107.42	81.07	105.37	56.92	70.63	69.30	70.79
Number of days of payables	days	6.06	5.32	6.86	5.44	3.82	3.25	2.93	2.55	3.62	2.82	3.26	3.26	4.50	3.40	4.50	3.46	6.41	5.17	5.27	5.16

June 30, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 60.21
= 6.06

The analysis of Automatic Data Processing Inc.'s days of payables over the observed periods reveals a pattern characterized by fluctuations within a relatively narrow range. Initially, the days of payables stood at approximately 5.16 days as of September 30, 2020. Over the subsequent quarters, there was a slight increase, reaching a peak of approximately 6.41 days by June 30, 2021. Following this peak, a notable decline occurred, with the number of days decreasing to approximately 3.26 days by September 30, 2022.

During the subsequent quarters, the trend exhibited minor oscillations within a relatively stable range, with a low point of around 2.55 days on September 30, 2023, and a slight uptick thereafter, reaching approximately 6.86 days on December 31, 2024. By the end of this period, the days of payables decreased again to about 5.32 days as of March 31, 2025.

Overall, the company has maintained a relatively disciplined payable management strategy, with fluctuations possibly reflecting seasonal adjustments or strategic payment policies. The decreasing trend observed from mid-2021 to late 2023 suggests a tendency toward quicker payments to suppliers during this period, while the increase in late 2024 indicates a potential shift toward longer payment periods. The range of approximately 2.5 to 7 days highlights a generally efficient payables cycle, with the company balancing maintaining supplier relationships and optimizing cash flow management.