Automatic Data Processing Inc (ADP)

Receivables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	20,560,900	19,202,600	18,012,200	16,498,300	15,005,400
Receivables	US$ in thousands	3,579,100	3,428,200	3,009,600	3,170,600	2,727,400
Receivables turnover		5.74	5.60	5.98	5.20	5.50

June 30, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $20,560,900K ÷ $3,579,100K
= 5.74

The receivables turnover ratios for Automatic Data Processing Inc. over the period from June 30, 2021, to June 30, 2025, reflect fluctuations in the company's efficiency in collecting its accounts receivable.

In the fiscal year ending June 30, 2021, the receivables turnover stood at 5.50 times, indicating that the company collected its average receivables approximately five and a half times during that year. This ratio declined slightly to 5.20 times in the subsequent year ending June 30, 2022, suggesting a marginal slowdown in receivables collection efficiency.

By the fiscal year ending June 30, 2023, the receivables turnover increased notably to 5.98 times, illustrating an improvement in collection efficiency and a reduction in the average number of days receivables remain outstanding. This upward trend paused in the following year, with the ratio decreasing slightly again to 5.60 times as of June 30, 2024, indicating a slight deterioration in collection performance.

Finally, in the fiscal year ending June 30, 2025, the ratio rose again to 5.74 times, demonstrating a modest recovery in receivables collection efficiency relative to the previous year.

Overall, the data depicts a pattern of modest fluctuations, with the receivables turnover ratio generally oscillating within a range of approximately 5.20 to 5.98 times. These movements indicate that while there were periods of improved collection efficiency, the company consistently maintained a relatively stable receivables management profile over the analyzed period.