Automatic Data Processing Inc (ADP)

Current ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total current assets	US$ in thousands	45,542,500	42,170,600	54,804,900	40,741,800	31,564,100
Total current liabilities	US$ in thousands	45,080,000	42,767,600	55,158,700	38,094,800	30,126,600
Current ratio		1.01	0.99	0.99	1.07	1.05

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $45,542,500K ÷ $45,080,000K
= 1.01

The current ratio for Automatic Data Processing Inc has displayed some fluctuations over the past five years. As of June 30, 2024, the current ratio stands at 1.01, indicating that the company's current assets are approximately equal to its current liabilities.

Comparing this to the previous year, we see a slight improvement from 0.99 in June 2023. However, when compared to June 2022 and June 2021, the current ratio remained relatively stable at 0.99 and 1.07, respectively.

The current ratio for June 2020 was 1.05, which was higher than the most recent ratio. This implies that the company had a stronger ability to cover its short-term obligations in June 2020 compared to the latest period.

Overall, while the current ratio for Automatic Data Processing Inc has fluctuated in recent years, it is important to consider other financial metrics and market conditions to gain a comprehensive understanding of the company's financial health and liquidity position.