Automatic Data Processing Inc (ADP)

Total asset 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
Total assets	US$ in thousands	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	39,165,500	43,383,400	49,059,400	37,714,700
Total asset turnover		0.35	0.29	0.32	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	0.37	0.34	0.30	0.38

June 30, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $19,202,800K ÷ $54,362,700K
= 0.35

The total asset turnover ratio for Automatic Data Processing Inc has shown some fluctuations over the past few quarters. The ratio indicates the company's ability to generate sales from its total assets.

The ratio ranged from a low of 0.22 to a high of 0.38 over the past two years, with an average of around 0.31. A higher ratio generally indicates that the company is more efficient in utilizing its assets to generate revenue.

In the most recent quarter, the total asset turnover ratio was 0.35, which suggests that for every dollar of assets, the company generated $0.35 in sales. This indicates a moderate level of efficiency in utilizing its assets to generate revenue.

It is important for the company to monitor and improve its total asset turnover ratio over time to ensure optimal utilization of its assets and improve its overall operational efficiency.