Automatic Data Processing Inc (ADP)

Total asset 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
Total assets	US$ in thousands	53,369,300	56,448,600	64,096,700	49,511,400	54,362,700	64,181,600	57,069,400	49,323,600	50,971,000	59,881,800	54,453,000	46,364,700	63,068,200	72,068,100	59,102,600	59,987,200	48,772,500	54,407,700	49,325,900	42,390,100
Total asset turnover		0.39	0.36	0.31	0.39	0.35	0.29	0.33	0.37	0.35	0.29	0.32	0.36	0.26	0.22	0.27	0.26	0.31	0.27	0.30	0.34

June 30, 2025 calculation

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

The total asset turnover ratio of Automatic Data Processing Inc. has exhibited fluctuations over the analyzed period, reflecting varying levels of asset utilization in generating revenue. Starting at 0.34 as of September 30, 2020, the ratio experienced a decline through December 31, 2020, reaching 0.30, and continued to decrease into March 31, 2021, to 0.27. A slight recovery is observed during the subsequent quarters, with the ratio rising marginally to 0.31 in June 30, 2021, and gradually declining again to 0.26 in September 30, 2021. The ratio maintained relatively steady levels, with minor variations, around 0.27 in December 2021 and dipping further to 0.22 in March 2022, indicating a period of subdued asset efficiency.

From mid-2022 onwards, the ratio showed a trend of recovery, reaching 0.36 as of September 30, 2022, which signifies an improved effectiveness in utilizing assets to generate sales. This upward trajectory continued into 2023, peaking at 0.37 in September 2023. However, slight dips occurred, with a decrease to 0.33 by December 2023 and further to 0.29 in March 2024. Subsequently, the ratio again improved, reaching 0.35 in June 2024 and 0.39 in September 2024, indicating a period of increased efficiency.

In the most recent quarters, the ratio stabilized at high levels, with 0.31 in December 2024, 0.36 in March 2025, and further increasing to 0.39 in June 2025. The latest data point as of September 30, 2025, indicates a ratio of 0.39, suggesting that the company's asset utilization in revenue generation has remained relatively strong and improved compared to earlier periods.

Overall, the trend demonstrates that the company experienced periods of declining asset efficiency, particularly in early 2021 and mid-2022, followed by phases of recovery and improvement. The recent ratios point towards a strengthening of operational efficiency, with the ratio approaching its higher levels observed earlier in the analyzed timeframe.