Automatic Data Processing Inc (ADP)

Working capital 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 current assets US$ in thousands 43,252,200 45,542,500 42,170,600 54,804,900 40,741,800
Total current liabilities US$ in thousands 41,278,300 45,080,000 42,767,600 55,158,700 38,094,800
Working capital turnover 10.42 41.52 5.67

June 30, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $20,560,900K ÷ ($43,252,200K – $41,278,300K)
= 10.42

The analysis of Automatic Data Processing Inc’s working capital turnover reveals notable fluctuations over the specified periods. As of June 30, 2021, the company’s working capital turnover was 5.67, indicating a moderate level of efficiency in utilizing working capital to generate revenue. Data for June 30, 2022, and June 30, 2023, are not available, suggesting either a lack of reporting or that the metric was not calculated for those periods.

By June 30, 2024, the working capital turnover experienced a significant increase to 41.52, reflecting a substantial improvement in the company's efficiency in deploying working capital to support revenue generation. This sharp rise could be attributable to better management of short-term assets and liabilities, or a rise in sales relative to working capital.

Subsequently, for June 30, 2025, the working capital turnover decreased to 10.42. While this value is substantially lower than the 2024 figure, it remains markedly higher than the 2021 level, indicating that the company still maintains a relatively efficient working capital utilization compared to earlier periods.

Overall, the data indicates a period of markedly improved operational efficiency in 2024, followed by a normalization in 2025. The absence of data for 2022 and 2023 limits the ability to analyze trends across those years comprehensively, but the available figures suggest a significant recent improvement in working capital management before the slight decrease observed in 2025.


See also:

Automatic Data Processing Inc Working Capital Turnover