Automatic Data Processing Inc (ADP)

Receivables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	19,202,600	18,012,200	16,498,300	15,005,400	14,589,800
Receivables	US$ in thousands	3,428,200	3,009,600	3,170,600	2,727,400	2,441,300
Receivables turnover		5.60	5.98	5.20	5.50	5.98

June 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $19,202,600K ÷ $3,428,200K
= 5.60

The receivables turnover ratio for Automatic Data Processing Inc has fluctuated over the past five years. The ratio measures how efficiently the company is collecting outstanding receivables from customers during the year.

In 2024, the receivables turnover ratio decreased to 5.60 from 5.98 in 2023, indicating a slight decline in the efficiency of collecting receivables compared to the previous year.

In 2023, the company had a higher receivables turnover ratio of 5.98, which might suggest that they were more effective in collecting outstanding payments from customers during that period.

In 2022, the ratio was 5.20, showing a decrease from the previous year. This could indicate that it took the company longer to collect receivables in 2022 compared to 2021.

In 2021, the receivables turnover ratio was 5.50, a slight improvement from the ratio of 5.98 in 2020. This suggests that the company was able to collect outstanding receivables more efficiently in 2021.

Overall, while there have been fluctuations in the receivables turnover ratio over the past five years, it is essential for Automatic Data Processing Inc to monitor and manage its receivables effectively to ensure timely collection of payments from customers.