Automatic Data Processing Inc (ADP)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	19,202,800	18,808,000	18,506,700	18,268,100	18,012,100	17,556,800	17,162,500	16,847,400	16,499,700	16,085,300	15,679,100	15,353,500	15,009,000	14,617,400	14,577,100	14,564,800	14,589,800	14,692,300	14,472,700	14,295,600
Receivables	US$ in thousands	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	2,441,300	2,620,600	2,587,900	2,490,400
Receivables turnover		5.60	5.43	5.49	5.90	5.98	5.71	5.43	5.73	5.20	4.95	5.73	5.54	5.50	5.29	5.81	5.85	5.98	5.61	5.59	5.74

June 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $19,202,800K ÷ $3,428,200K
= 5.60

The receivables turnover ratio for Automatic Data Processing Inc has exhibited some fluctuations over the past few quarters, ranging from 4.95 to 5.98. This ratio indicates how efficiently the company is collecting its accounts receivable during a specific period. A higher receivables turnover ratio generally suggests that the company is more efficient in collecting payments from its customers.

In the most recent quarter, the receivables turnover ratio stands at 5.60, which is slightly higher than the previous quarter's ratio of 5.43. This implies that the company has been able to collect its receivables more quickly in the current quarter compared to the previous one. However, it is essential to monitor this ratio over multiple periods to identify any long-term trends and assess the effectiveness of the company's credit and collection policies.

Overall, Automatic Data Processing Inc's receivables turnover ratio has remained relatively stable within a reasonable range, indicating that the company has been managing its receivables effectively. Further analysis and comparison with industry benchmarks may provide additional insights into the company's customer credit policies and collection efficiency.