Automatic Data Processing Inc (ADP)

Total asset 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
Total assets	US$ in thousands	54,362,700	50,971,000	63,068,200	48,772,500	39,165,500
Total asset turnover		0.35	0.35	0.26	0.31	0.37

June 30, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $19,202,600K ÷ $54,362,700K
= 0.35

The total asset turnover of Automatic Data Processing Inc has shown variability over the past five years, ranging from 0.26 to 0.37. This ratio indicates the company's efficiency in generating sales revenue relative to its total assets.

In 2022, the total asset turnover was the lowest at 0.26, suggesting that the company was less effective in utilizing its assets to generate revenue compared to the other years. This could indicate either a decrease in sales relative to assets or an increase in the value of assets without a corresponding increase in revenue generation.

The following year, in 2023, the total asset turnover remained constant at 0.35, indicating a stable efficiency in asset utilization. However, in 2024, despite the total asset turnover remaining at 0.35, there was no improvement in the company's ability to generate sales relative to its total assets.

Overall, the trend of total asset turnover fluctuating between 0.26 and 0.37 suggests that Automatic Data Processing Inc may need to focus on optimizing its asset management strategies to consistently improve its efficiency in converting assets into revenue.