Automatic Data Processing Inc (ADP)

Current ratio

		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
Total current assets	US$ in thousands	45,542,500	55,639,600	48,543,400	40,480,100	42,170,600	51,518,200	46,143,600	37,968,800	54,804,900	63,903,800	51,107,300	52,047,900	40,741,800	46,752,400	41,662,300	34,815,400	31,564,100	35,708,700	41,365,000	29,508,500
Total current liabilities	US$ in thousands	45,080,000	54,901,900	48,097,700	41,228,700	42,767,600	51,536,100	46,813,700	39,166,200	55,158,700	63,106,500	49,084,000	49,669,900	38,094,800	44,615,200	39,176,500	32,329,600	30,126,600	34,672,800	40,522,400	29,200,900
Current ratio		1.01	1.01	1.01	0.98	0.99	1.00	0.99	0.97	0.99	1.01	1.04	1.05	1.07	1.05	1.06	1.08	1.05	1.03	1.02	1.01

June 30, 2024 calculation

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

The current ratio of Automatic Data Processing Inc has been relatively stable over the past few quarters, ranging between 0.97 to 1.08. This indicates that the company's current assets are generally sufficient to cover its current liabilities.

The current ratio was lowest in September 2022 at 0.97, suggesting a potential liquidity challenge at that time. However, it has improved since then and reached its peak in September 2020 at 1.08, indicating a stronger ability to meet short-term obligations.

Overall, the trend in the current ratio suggests that Automatic Data Processing Inc has been managing its current assets and liabilities effectively to maintain a healthy liquidity position.