Automatic Data Processing Inc (ADP)

Total asset 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
Total assets	US$ in thousands	53,369,300	54,362,700	50,971,000	63,068,200	48,772,500
Total asset turnover		0.39	0.35	0.35	0.26	0.31

June 30, 2025 calculation

Total asset turnover = Revenue ÷ Total assets
= $20,560,900K ÷ $53,369,300K
= 0.39

The total asset turnover ratio for Automatic Data Processing Inc. demonstrates a fluctuating trend over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio stood at 0.31, indicating that the company generated $0.31 in revenue per dollar of total assets. This ratio declined to 0.26 by June 30, 2022, suggesting a decrease in asset efficiency or a relative increase in total assets without a proportional increase in sales.

Subsequently, the ratio exhibited an upward trend, reaching 0.35 by June 30, 2023, which signifies an improvement in asset utilization relative to revenue generation. This level remained stable through June 30, 2024, maintaining at 0.35, reflecting a period of consistent asset efficiency. The ratio continued its upward trajectory, increasing to 0.39 by June 30, 2025. This improvement indicates that the company became more effective in leveraging its assets to generate sales over the period.

Overall, the data suggests that Automatic Data Processing Inc. experienced a temporary dip in asset efficiency in 2022, followed by a measurable and sustained enhancement in asset utilization in subsequent years. The increase from 0.26 in 2022 to 0.39 in 2025 reflects a positive trend in operational efficiency, potentially driven by strategic initiatives aimed at optimizing asset use or improvements in revenue generation processes relative to the company's asset base.