Automatic Data Processing Inc (ADP)
Current ratio
Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
---|---|---|---|---|---|---|
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 |
Current ratio | 1.05 | 1.01 | 0.99 | 0.99 | 1.07 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $43,252,200K ÷ $41,278,300K
= 1.05
The analysis of Automatic Data Processing Inc.'s current ratio over the observed period indicates a relatively stable liquidity position, with slight fluctuations across the years. As of June 30, 2021, the current ratio stood at 1.07, suggesting that current assets modestly exceeded current liabilities. This ratio experienced a decline in the subsequent year, reaching 0.99 by June 30, 2022, and maintaining that level through June 30, 2023, indicating a marginally less comfortable liquidity cushion during this period.
By June 30, 2024, the current ratio increased slightly to 1.01, demonstrating a marginal improvement in liquidity, bringing current assets nearly in line with current liabilities. The ratio further grew to 1.05 by June 30, 2025, reflecting a modest enhancement in the company's ability to meet its short-term obligations with its current assets.
Overall, the company's current ratio remained close to the threshold of 1.0 throughout the period, oscillating slightly above and below it, which generally connotes an adequate but tight liquidity position. The small upward trend observed in the most recent year suggests a cautious return to a slightly more comfortable liquidity margin, although the ratio still remains relatively stable and indicative of careful liquidity management.
Peer comparison
Jun 30, 2025