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.


See also:

Automatic Data Processing Inc Total Asset Turnover (Quarterly Data)