Automatic Data Processing Inc (ADP)

Quick 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
Cash	US$ in thousands	2,913,400	3,291,700	1,641,300	1,441,400	2,083,500	1,828,400	1,345,000	1,207,700	1,436,300	1,634,200	1,745,000	1,602,100	2,575,200	1,891,500	1,602,200	1,613,100	1,908,500	1,705,000	1,500,400	1,403,900
Short-term investments	US$ in thousands	384,000	0	24,400	146,800	14,700	26,300	16,400	24,400	47,000	27,600	19,700	74,300	10,400	10,500	10,600	3,400	0	3,200	7,200	3,545,100
Receivables	US$ in thousands	3,428,200	3,460,700	3,372,400	3,095,100	3,009,600	3,072,100	3,162,300	2,939,200	3,170,600	3,250,700	2,736,000	2,769,700	2,727,400	2,765,400	2,509,800	2,489,100	2,441,300	2,620,600	2,587,900	2,490,400
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
Quick ratio		0.15	0.12	0.10	0.11	0.12	0.10	0.10	0.11	0.08	0.08	0.09	0.09	0.14	0.10	0.11	0.13	0.14	0.12	0.10	0.25

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,913,400K + $384,000K + $3,428,200K) ÷ $45,080,000K
= 0.15

The quick ratio of Automatic Data Processing Inc has shown some fluctuations over the past 8 quarters, ranging from a low of 0.08 to a high of 0.15. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

The trend in the quick ratio for Automatic Data Processing Inc indicates some variability but generally staying below the ideal threshold of 1. The quick ratio was below 0.1 for several quarters, suggesting a potential liquidity risk. In the most recent quarter, the quick ratio improved slightly to 0.15 but still remains relatively low.

Overall, the quick ratio analysis suggests that Automatic Data Processing Inc may have some challenges in meeting its short-term obligations with its current liquid assets. Investors and stakeholders should continue to monitor the company's liquidity position to ensure it remains sustainable.