Automatic Data Processing Inc (ADP)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	2,991,300	2,989,000	2,987,100	2,985,000	1,002,800
Total assets	US$ in thousands	54,362,700	50,971,000	63,068,200	48,772,500	39,165,500
Debt-to-assets ratio		0.06	0.06	0.05	0.06	0.03

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,991,300K ÷ $54,362,700K
= 0.06

The debt-to-assets ratio of Automatic Data Processing Inc has remained relatively stable over the past five years, hovering between 0.03 and 0.06. This ratio indicates that the company's level of debt relative to its total assets has been consistently low, with the majority of its assets being financed by equity rather than debt. A lower debt-to-assets ratio suggests a lower financial risk for the company, as it indicates a smaller reliance on debt financing. Overall, Automatic Data Processing Inc's consistent low debt-to-assets ratio reflects a prudent financial management strategy aimed at maintaining a healthy balance between debt and equity in its capital structure.