Automatic Data Processing Inc (ADP)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	20,560,900	20,202,600	19,903,400	19,523,000	19,202,700	18,912,000	18,586,000	18,309,000	18,012,200	17,662,000	17,247,200	16,881,600	16,498,300	16,107,600	15,696,600	15,366,900	15,005,300	14,645,200	14,591,000	14,564,800
Receivables	US$ in thousands	3,579,100	3,547,900	3,503,500	3,316,700	3,428,200	3,460,700	3,372,400	3,095,100	3,009,600	3,072,100	3,162,300	2,939,200	3,170,600	3,250,700	2,736,000	2,769,700	2,727,400	2,765,400	2,509,800	2,489,100
Receivables turnover		5.74	5.69	5.68	5.89	5.60	5.46	5.51	5.92	5.98	5.75	5.45	5.74	5.20	4.96	5.74	5.55	5.50	5.30	5.81	5.85

June 30, 2025 calculation

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

The receivables turnover for Automatic Data Processing Inc. has demonstrated relative stability over the analyzed period from September 2020 through June 2025. Throughout this timeframe, the ratio generally fluctuated within a range of approximately 4.96 to 5.98, indicating a consistent efficiency in collecting accounts receivable. Notably, the ratio experienced incremental increases towards the latter part of the period, reaching a high of 5.98 in June 2023 and maintaining a similar level through September 2024 before slight declines ensued.

The average receivables turnover over this period suggests that the company typically collects its receivables roughly 63 to 73 days per cycle (calculated as 365 divided by the turnover ratio). The observed stability in this ratio indicates effective receivables management, with no significant deterioration or dramatic improvements. Slight upward movements in the ratio imply marginal enhancements in collection efficiency, whereas minor declines may reflect either seasonal variations or brief changes in client payment behaviors.

Overall, the consistent receivables turnover ratio points to a steady collection process and effective credit policies, supporting predictable cash flow generation. Any deviations outside the observed range could warrant further investigation, but within this data set, the company's receivables management appears stable and reliable over the analyzed period.